Problem 11-4A Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales $2,636,000 Expenses: Cost of goods sold $1,600,000 Operating expenses 788,000 Depreciation expense 20,000 Loss on sale of land 7,300 Interest expense 11,500 Income tax expense 41,000 Total expenses 2,467,880 Net income $ 168,280 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment $ 159, 180 73,300 105,000 9,120 $ 85,940 53,000 128,000 4,560 98,000 203,000 256,000 226,000 203,000 98,000 203,000 256,000 (60,600) $ 843,000 @ 226,000 283,000 (40,600) $659,900 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: Common stock Retained earnings Total liabilities and stockholders' equity $ 59,700 5,300 14,300 $ 74,000 8,689 13,300 271,000 218,000 230,000 262,700 S 843,600 230,000 116,000 $659,980 Additional Information for 2021: 1. Purchase investment in bonds for $98,000. 2. Sell land costing $23,000 for only $15,700, resulting in a $7,300 loss on sale of land. 2. Purchase $53.000 in equipment by issuing a $53,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $21,500. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) VIDEO PHONES, INC. 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 och Cinn fram Cinnan tin 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