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 $3,586,000 Expenses: Cost of goods sold $2,400,000 Operating expenses 948,000 Depreciation expense 36,000 Loss on sale of land 8,900 Interest expense 19,500 Income tax expense 57,000 Total expenses 3,469,400 Net income $ 116,600 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 257,740 90,900 105,000 14,160 $219, 420 69,000 144,000 7,080 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 114,000 219,000 288,000 (79,800 $1,009,000 0 258,000 219,000 (43, 800) $ 872,700 $ 74,100 $ 90,000 $ 74,100 6,900 15,900 $ 90,000 11,800 14,900 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 303,000 234,000 390,000 219,100 $1,009,000 390,000 132,000 $ 872,700 Additional Information for 2021: 1. Purchase investment in bonds for $114,000. 2. Sell land costing $39,000 for only $30,100, resulting in a $8,900 loss on sale of land. 3. Purchase $69,000 in equipment by issuing a $69,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $29,500. 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: $ 0 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