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 $2,986,000 VIDEO PHONES, INCH Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold $1,900,000 Operating expenses 848000 Depreciation expense 26,080 Loss on sale of land 70.900 Interest expense 14,500 Income tax expense 42.000 Total expenses Net income 2,843, 400 $ 142,600 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land $ 190, 340 79,900 105,000 10,560 $136,220 59,800 134,000 5,280 184,000 209,000 238,080 104,000 209,080 268,000 (67,800) $ 899,000 @ 238,000 209,000 (41,880) $739,700 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 $ 65, 100 5,900 14,900 $ 80,000 9,800 13,900 283,00 224,000 299,000 240,100 $ 899,000 290,000 122,880 $739,700 Additional Information for 2021: 1. Purchase investment in bonds for $104.000. 2. Sell land costing $29,000 for only $21100, resulting in a $7.900 loss on sale of land. 3. Purchase $59.000 in equipment by issuing a $59.000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $24,500 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.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 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 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