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. $2,516,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold $1,500,000 Operating expenses 768,000 Depreciation expense 18,000 Loss on sale of land 7,100 Interest expense 10,500 Income tax expense 39,000 Total expenses Net income 2,342, 600 $ 173,400 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 145,460 71,100 105,000 8,640 $ 69,180 51,000 126,000 4,320 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 earnings Total liabilities and stockholders' equity 96,000 201,000 252,000 (58,200) $ 821,000 222,000 201,000 (40,200) $633,300 $ 57,900 5,100 14,100 $ 72,000 8,200 13,100 267,000 216,000 210,000 266,900 $ 821,000 210,000 114,000 $633,300 Additional Information for 2021: 1. Purchase Investment in bonds for $96,000. 2. Sell land costing $21,000 for only $13,900, resulting in a $7,100 loss on sale of land. 3. Purchase $51,000 in equipment by Issuing a $51,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $20,500. 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: 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 Problem 11-6A Calculate operating activities-direct method (LO11-7) Portions of the financial statements for Alliance Technologles are provided below. $405, eee ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales Expenses: Cost of goods sold $ 235,000 Operating expenses 70, eee Depreciation expense 17, see Income tax expense 27,000 Total expenses Net income 349,00 $ 56,000 ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax payable $ 7, see 14, eee 10,eee 6, eee 9, eee 24, eee Required: Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the direct method. (List cash outflows as negative amounts.) ALLIANCE TECHNOLOGIES Statement of Cash Flows (partial) For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net cash flows from operating activities Exercise 11-18A Determine cash received from customers (LO11-7) Consider the three Independent situations below (amounts are $ In millions): Required: 1. Calculate cash received from customers. (Enter your answers in millions (I.e., $10,100,000 should be entered as 10.1).) Situation Sale Revenue Accounts Receivable Increase (Decrease) Cash Received from Customers 1. 200 0 2. 200 30 3. 200 (30) 2. Prepare the summary Journal entry for each situation. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account field. Enter your answers in millions (l.e., $10,100,000 should be entered as 10.1.) View transaction list Journal entry worksheet Record the payment of cash to suppliers. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal