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 $3,536,000 Expenses: Cost of goods sold $2,350,000 Operating expenses 938,000 Depreciation expense 35,000 Lons on sale of land 8,800 Interest expense 19,000 Income tax expense 56,000 Total expenses 3,406,800 Net Income $ 129,200 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: ,19 56,000 interest expense Income tax expense Total expenses Net income 3,406,800 $ 129,200 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 5 $211,040 68,000 143,000 6,960 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 $ 260,880 89,800 105,000 13,920 113,000 218,000 286,000 (78,600). $1,000,000 0 256,000 218,000 (43.600) $859,400 73,200 6,800 15,800 $ 89,000 11,600 14,800 301,000 233,000 380,000 231, 200 $1,000,000 380,000 131,000 $859,400 Additional Information for 2021: 1. Purchase investment in bonds for $113.000. YouTube Maps Pearson Sign In IP Do Homework-L. MyLab Math Pea.. > Foods Connect - Class MATH Giberty! ning Assessment Component Saved Help Sa (178.600) $1,008,000 (43,600) $859, 400 $ Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholdere equity Common stock Retained earnings Total liabilities and stockholders' equity 73,200 6,800 15,800 $ 89,000 11,600 14,800 301.000 233,000 380,000 231,200 $1,000,000 380,000 131,000 $859,400 Additional Information for 2021: 1. Purchase investment in bonds for $113,000 2. Sell land costing $38,000 for only $29,200, resulting in a $8,800 loss on sale of land, 3. Purchase $68,000 in equipment by issuing a $68,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $29,000 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.) VIDEO PHONES, INC Statement of Cash Flow For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Cash received from customers Cash paid for interest Cash naid for income taxes 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: Cash received from customers Cash paid for interest Cash paid for income taxes Cash paid for operating expenses Cash paid to suppliers $ Net cash flows from operating activities Cash Flows from Investing Activities: Gain (on sale of land) Purchase investment in bonds 0 Net cash flows from investing activities Cash Flows from Financing Activities: Gain (on sale of land) Purchase investment in bonds Net cash flows from financing activities 0 Cash received from customers Cash paid for interest Cash paid for income taxes Cash paid for operating expenses Cash paid to suppliers $ 0 Net cash flows from operating activities Cash Flows from Investing Activities: Gain (on sale of land) Purchase investment in bonds 0 Net cash flows from investing activities Cash Flows from Financing Activities: Gain (on sale of land) Purchase investment in bonds Net cash flows from financing activities 0 $ Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Payment of cash dividends 0