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 $2,576,000 Expenses: Cost of goods sold $1,550,000 Operating expenses 778,000 Depreciation expense 19,000 Loss on sale of land 7,200 Interest expense 11,000 Income tax expense 40,000 Total expenses 2,405,200 Net income $ 170,000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $152.320 22 200 105,000 8.880 $ 77,560 52,000 127.000 4,440 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 Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained carnings Total liabilities and stockholders' equity 97,000 202,000 254,000 (59,400 $832,000 224,000 202,000 (40.400) $646, 600 $ 58.800 $ 73,000 5, 200B , 400 14,200 13,200 269,000 217,000 220,000 264,800 $832.000 220,000 115,000 $646, 600 Additional Information for 2021: 1. Purchase investment in bonds for $97,000. 2. Sell land costing $22,000 for only $14,800, resulting in a $7.200 loss on sale of land. 3. Purchase $52,000 in equipment by issuing a $52,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $21,000. 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.)