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. 75 pints VIDEO PHONESs, INC. Income Statement For the Year Ended Decenber 31, 2021 Skipped Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense LOss on sale of land Interest expense Income tax expense Total expenses $3,386,000 $2,200,000 908, 000 32,000 8,500 17,500 53,000 eBook 3,219,000 Print Net income $ 167,000 VIDEO PHONES, INC. Balance Sheets December 31 References 2021 2020 Assets Current assets: Cash Accounts receivable $ 270, 300 86,500 105,000 13,200 $185,900 65,000 140,000 6,600 Inventory Prepaid rent Long-tern assets Investments Land Equipment Accunulated depreciation 110,000 215,000 280,000 250,000 215,000 (43,000) $819,500 (75,000) $1,005,000 Total asseta Liabilities and Stockholders' Equity Current 1iabilities Accounts payable Interest payable Incone tax payable Long-tern 11abilitiesi Notes payable Stockholders' equity: Common stock Retained earnings $ 86,000 11,000 14,500 70,500 6,500 15,500 295,000 230,000 350,000 267, 500 $1,005,000 350,000 128,000 Total liabilities and stockholdera' equity 6819,500 4 Additional Information for 202t 1. Purchase investment in bonds for $10,000. 2. Sell land costing $35,000 for only $26,500, resulting in a $8,500 loss on sale of land. 3. Purchase $65,000 in equipment by issuing a $65,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Deciare and pay a cash dividend of $27,500. 175 points Skipped 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: ed ces 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 poeriod Cash at the end of the period Note: Noncash Activities