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 $3,436,000 Expenses: Cost of goods $2,250,000 sold Operating 918,000 expenses Depreciation 33,000 expense Loss on sale of 8,600 land Interest expense 18,000 Income tax 54,000 expense Total expenses 3,281,600 Net income $ 154,400 2020 $194,280 66,000 141,000 6,720 VIDEO PHONES, INC. Balance Sheets December 31 2021 Assets Current assets: Cash $ 267,160 Accounts receivable 87,600 Inventory 105,000 Prepaid rent 13,440 Long-term assets: Investments 111,000 Land 216,000 Equipment 282,000 Accumulated depreciation (76,200) Total assets $1,006,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 71,400 Interest payable 6,600 Income tax payable 15,600 Long-term liabilities: Notes payable 297,000 Stockholders' equity: Common stock 360,000 Retained earnings 255,400 Total liabilities and stockholders' $1,006,000 equity 0 252,000 216,000 (43,200) $832,800 $ 87,000 11,200 14,600 231,000 360,000 129,000 $832,800 Additional Information for 2021: 1. Purchase investment in bonds for $111,000. 2. Sell land costing $36,000 for only $27,400, resulting in a $8,600 loss on sale of land. 3. Purchase $66,000 in equipment by issuing a $66,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $28,000. 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: 0 Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0