Problem 11-4A (Algo) Prepare a statement of cash flowsindirect method (LO11-2, 11-3, 11-4, 11-5)

The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided.

VIDEO PHONES, INCORPORATED
Income Statement
For the Year Ended December 31, 2024
Net sales		$2,886,000
Expenses:
Cost of goods sold	$1,800,000
Operating expenses	828,000
Depreciation expense	24,000
Loss on sale of land	7,700
Interest expense	13,500
Income tax expense	45,000
Total expenses		2,718,200
Net income		$ 167,800

VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$196,620	$119,460
Accounts receivable	77,700	57,000
Inventory	105,000	132,000
Prepaid rent	10,080	5,040
Long-term assets:
Investments	102,000	0
Land	207,000	234,000
Equipment	264,000	207,000
Accumulated depreciation	(65,400)	(41,400)
Total assets	$897,000	$713,100
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 63,300	$ 78,000
Interest payable	5,700	9,400
Income tax payable	14,700	13,700
Long-term liabilities:
Notes payable	279,000	222,000
Stockholders' equity:
Common stock	270,000	270,000
Retained earnings	264,300	120,000
Total liabilities and stockholders equity	$897,000	$713,100

Additional Information for 2024:

1. Purchased investment in bonds for $102,000.
2. Sold land for $19,300. The land originally was purchased for $27,000, resulting in a $7,700 loss being recorded at the time of the sale.
3. Purchased $57,000 in equipment by issuing a $57,000 long-term note payable to the seller. No cash was exchanged in the transaction.
4. Declared and paid a cash dividend of $23,500.

Required:

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)