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 $2,886,000 Expenses: Cost of goods sold $1,800,000 Operating expenses 828,000 Depreciation expense 24,000 Loss on sale of land 7,700 Interest expense 13,500 Income tax expense 45,000 Total expenses 2,718,200 Net income $ 167,800 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $196,620 77,700 105,000 10,080 $119,460 57,000 132,000 5,040 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 102,000 207,000 264,000 (65,400) $ 897,000 0 234,000 207,000 (41,400) $ 713,100 $ 63,300 5,700 14,700 $ 78,000 9,400 13,700 279,000 222,000 270,000 264, 300 270,000 120,000 $ 713,100 $897,000 2/3, UUU 222, VUU INULES payaule Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 270,000 264,300 $897,000 270,000 120,000 $ 713, 100 Additional Information for 2021: 1. Purchase investment in bonds for $102,000. 2. Sell land costing $27,000 for only $19,300, resulting in a $7,700 loss on sale of land. 3. Purchase $57,000 in equipment by issuing a $57,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $23,500. 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: 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