Saved Help Save & E Chei The income statement, balance sheets, and additional information for Video Phones, Inc., are provided $2,576,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold $1,550,000 Operating expenses 778,000 Depreciation expense 19, eee Loss on sale of land 7,200 Interest expense 11,000 Income tax expense 40,000 Total expenses Net income 2,485, zee $ 170,88 VIDEO PHONES, INC. Balance Sheets December 31 2021 zeze $152,320 72,200 105,eee 8,888 $ 77,560 52.000 127,eee 4,440 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 97,000 282,000 254,000 (59,400) $ 832,000 @ 224,00 2e2,eee (40,40) $646,600 $ 58,800 5,200 14,200 $ 73,000 8,400 13,200 269,000 217,000 220,000 264,800 $ 832,000 220,000 115,000 $646,600 Saved Help Save C Additional Information for 2021: 1. Purchase investment in bonds for $97.000 2. Sell land costing $22,000 for only $14,800, resulting in a $7.200 loss on sale of land. 3. Purchase $52,000 in equipment by issuing a $52,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $21,000. 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.) OS $ 170,800 VIDEO PHONES, INC Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Not income Adjustments to reconcile not income to net cash flows from operating activities: Loss (on sale of land) Depreciation expense Decrease in inventory Increase in prepaid rent Increase in accounts receivable Decrease in accounts payable Decrease in interest payable Increase in income tax payable 7.200 19,000 1,000 $ 198.000 Net cash flows from operating activities Cash Flows from Investing Activities: Proceeds from sale of land Purchase investment in bonds 14,800 (97.000) Increase in income tax payable eBook $ 198,000 Print Net cash flows from operating activities Cash Flows from Investing Activities: Proceeds from sale of land Purchase investment in bonds 14,8001 (97,000) Ferences (82 200) Net cash flows from investing activities Cash Flows from Financing Activities: Payment of cash dividends $ (21,000) (21,000) Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ ol mere to search