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. Net sales Expenses: VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,350,000 938,000 35,000 8,800 19,000 56,000 $3,536,000 3,406,800 $ 129,200 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 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 $ 260,880 89,800 $211,040 68,000 105,000 143,000 13,920 6,960 113,000 e 218,000 256,000 286,000 218,000 (78,600) (43,600) $1,008,000 $859,400 $ 73,200 6,800 $ 89,000 11,600 14,800 15,800 Long-term liabilities: Notes payable 301,000 233,000 Stockholders' equity: Common stock 380,000 380,000 Retained earnings 231,200 131,000 Total liabilities and stockholders' equity $1,008,000 $859,400