Problem 11-4A Prepare a statement of cash flows-indirect method (L011-2, 11-3, 11-4, 11- The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. $3,386,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses : Cost of goods sold $2,200,000 Operating expenses 998,000 Depreciation expense 32,000 Loss on sale of land 8,500 Interest expense 17,500 Income tax expense 53,000 Total expenses Net income ces 3,219,080 $ 167,000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 270,300 86,500 105,000 13,280 $185,900 65,000 140,000 6,600 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity! 110,000 215,000 280,000 (75,000) $1,895,000 250,000 215,000 (43,000) $819,500 70,500 6,500 15,500 $ 86,080 11,000 14,500 295,000 230.000 ac a 20 a VIDEO PHONES, INC. Balance Sheets December 31 2021 $ 270,300 86,500 105,000 13,200 $185.000 65,00 140,000 6.600 Current assets: Cash Accounts receivable Inventory Prepaid rent Long-ters assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term labilities Notes payable Stockholders equity: Comon stock Retained earnings Total labilities and stockholders' c 110,000 215,000 200.000 (25.000) 51,00,000 250,000 215,000 000) 5819,50 70,500 6,500 15,500 $ 86,000 11,000 14,500 295,00 230,00 350,000 ty $1,60,000 120,00 $819.50 Additional Information for 2021 1. Purchase investment in bonds for $10 000 2. Sell and costing $35.000 for only $26.500, resulting in a $8.500 loss on sale of land. 3. Purchase $65.000 in equipment by issuing a $65.000 long term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $27500 Required: Prepare the statement of cash flows using the Indirect method Onclose any noncash transactions in an accompanying note List Cash outflows and any decrease in cash as negative amounts) onal homework and attendance points) Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities