Problem 11-7A Calculate operating activities-direct method (LO11-4, 11-5, 11-7) 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 $2,816,000 Expenses Cost of goods sold Operating expenses Depreciation expense $1,750,000 818,000 23,000 7,600 13,000 44,000 Loss on sale of land Interest expense Income tax expense Total expenses 2,655,600 $ 160,400 Net income VIDEO PHONES, INC Balance Sheets December 31 2021 2020 Assets Current assets: $179,760 76,600 105,000 9,840 $111,080 56,000 Cash Accounts receivable Inventory Prepaid rent Long-term assets 131,000 4,920 101,000 206,000 262,000 0 Investments 232,000 206,000 Land Equipment Current assets: $179,760 76,600 105,000 9,840 $111,080 Cash 56,000 Accounts receivable Inventory Prepaid rent 131,000 4,920 Long-term assets: Investments 0 232,000 206,000 (41,200) 101,000 206,000 262,000 (64,200) Land Equipment Accumulated depreciation $876,000 $699,800 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity $ 62,400 $ 77,000 9,200 13,600 5,600 14,600 277,000 221,000 Common stock Retained earnings 260,000 260,000 256,400 119,000 Total liabilities and stockholders' equity $876,000 $699,800 Additional Information for 2021: 1. Purchase investment in bonds for $101,000. 2. Sell land costing $26,000 for only $18,400, resulting in a $7,600 loss on sale of land. 3. Purchase $56,000 in equipment by issuing a $56,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $23,000 Required: Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) Cash Flows from Operating Activities: Cash received from customers Cash paid for interest Cash paid for income taxes Cash paid for operating expenses Net cash flows from operating activities $ 0 Cash Flows from Investing Activities: (101,000) Purchase investment in bonds Gain (on sale of land) 18,400 Net cash flows from investing activities (82,600) Cash Flows from Financing Activities: Payment of cash dividends Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities C