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		$2,516,000
Expenses:
Cost of goods sold	$1,500,000
Operating expenses	768,000
Depreciation expense	18,000
Loss on sale of land	7,100
Interest expense	10,500
Income tax expense	39,000
Total expenses		2,342,600
Net income		$ 173,400

VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$145,460	$69,180
Accounts receivable	71,100	51,000
Inventory	105,000	126,000
Prepaid rent	8,640	4,320
Long-term assets:
Investments	96,000	0
Land	201,000	222,000
Equipment	252,000	201,000
Accumulated depreciation	(58,200)	(40,200)
Total assets	$821,000	$633,300
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 57,900	$ 72,000
Interest payable	5,100	8,200
Income tax payable	14,100	13,100
Long-term liabilities:
Notes payable	267,000	216,000
Stockholders' equity:
Common stock	210,000	210,000
Retained earnings	266,900	114,000
Total liabilities and stockholders equity	$821,000	$633,300

Additional Information for 2024:

1. Purchased investment in bonds for $96,000.
2. Sold land for $13,900. The land originally was purchased for $21,000, resulting in a $7,100 loss being recorded at the time of the sale.
3. Purchased $51,000 in equipment by issuing a $51,000 long-term note payable to the seller. No cash was exchanged in the transaction.
4. Declared and paid a cash dividend of $20,500.

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.)