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 $3,636,000 Expenses: Cost of goods $2,450,000 sold 958,000 Operating. expenses Depreciation 37,000 expense Loss on sale of 9,000 land Interest expense 20,000 Income tax 58,000 expense Total expenses 3,532,000 Net income $ 104,000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash $ 254,600 $227,800 70,000 Accounts receivable 92,000 Inventory 105,000 145,000 Prepaid rent 14,400 7,200 Long-term assets: Investments 115,000 8 Land 220,000 260,000 Equipment 290,000 220,000 Accumulated depreciation. (81,000) (44,000) Total assets $1,010,000 $886,000 Liabilities and Stockholders' Equity Current liabilities: $ 75,000 $91,000 Accounts payable Interest payable Income tax payable 7,000 12,000 16,000 15,000 Long-term liabilities: Notes payable Stockholders' equity: 305,000 235,000 Common stock 400,000 400,000 Retained earnings 207,000 133,000 Total liabilities and stockholders' $1,010,000 $886,000 equity Additional Information for 2021: 1. Purchase investment in bonds for $115,000. 2. Sell land costing $40,000 for only $31,000, resulting in a $9,000 loss on sale of land. 3. Purchase $70,000 in equipment by issuing a $70,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $30,000. 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: 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 $ $ 0 0 0