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		$3,636,000
Expenses:
Cost of goods sold	$2,450,000
Operating expenses	958,000
Depreciation expense	37,000
Loss on sale of land	9,000
Interest expense	20,000
Income tax expense	58,000
Total expenses		3,532,000
Net income		$ 104,000

VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$254,600	$227,800
Accounts receivable	92,000	70,000
Inventory	105,000	145,000
Prepaid rent	14,400	7,200
Long-term assets:
Investments	115,000	0
Land	220,000	260,000
Equipment	290,000	220,000
Accumulated depreciation	(81,000)	(44,000)
Total assets	$1,010,000	$886,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 75,000	$ 91,000
Interest payable	7,000	12,000
Income tax payable	16,000	15,000
Long-term liabilities:
Notes payable	305,000	235,000
Stockholders' equity:
Common stock	400,000	400,000
Retained earnings	207,000	133,000
Total liabilities and stockholders equity	$1,010,000	$886,000

Additional Information for 2024:

Purchased investment in bonds for $115,000.

Sold land for $31,000. The land originally was purchased for $40,000, resulting in a $9,000 loss being recorded at the time of the sale.

Purchased $70,000 in equipment by issuing a $70,000 long-term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $30,000.

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.)