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 $3,236,000 Expenses: Cost of goods sold $2,100,000 Operating 888,000 expenses Depreciation 30,000 expense Loss on sale of 8,300 land Interest expense 16,500 Income tax 51,000 expense Total expenses 3,093,800 Net income $ 142,200 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land VIDEO PHONES, INC. Balance Sheets December 31 Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 2021 2020 $226,580 $169,140 84,300 63,000 105,000 138,000 12,720 6,360 108,000 0 213,000 246,000 276,000 213,000 (72,600) (42,600) $953,000 $792,900 $ 68,700 $ 84,000 Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 6,300 15,300 10,600 14,300 291,000 228,000 330,000 330,000 241,700 126,000 Total liabilities and stockholders' equity $953,000 $792,900 Additional Information for 2021: 1. Purchase investment in bonds for $108,000. 2. Sell land costing $33,000 for only $24,700, resulting in a $8,300 loss on sale of land. 3. Purchase $63,000 in equipment by issuing a $63,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $26,500. 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.)