The income statement, balance sheet, and additional information for Video Phones, Inc., are provided.

VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2015
Net sales		$	3,436,000
Expenses:
Cost of goods sold	$ 2,250,000
Operating expenses	918,000
Depreciation expense	33,000
Loss on sale of land	8,600
Interest expense	18,000
Income tax expense	54,000
Total expenses			3,281,600
Net income		$	154,400

VIDEO PHONES, INC. Balance Sheet December 31
	2015		2014
Assets
Current assets:
Cash	$	267,160	$	194,280
Accounts receivable		87,600		66,000
Inventory		105,000		141,000
Prepaid rent		13,440		6,720
Long-term assets:
Investments		111,000		0
Land		216,000		252,000
Equipment		282,000		216,000
Accumulated depreciation		(76,200)		(43,200)
Total assets	$	1,006,000	$	832,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	71,400	$	87,000
Interest payable		6,600		11,200
Income tax payable		15,600		14,600
Long-term liabilities:
Notes payable		297,000		231,000
Stockholders' equity:
Common stock		360,000		360,000
Retained earnings		255,400		129,000
Total liabilities and stockholders equity	$	1,006,000	$	832,800

Additional Information for 2015:
1.	Purchase investment in bonds for $111,000.
2.	Sell land costing $36,000 for only $27,400, resulting in a $8,600 loss on sale of land.
3.	Purchase $66,000 in equipment by borrowing $66,000 with a note payable due in three years. No cash is exchanged in the transaction.
4.	Declare and pay a cash dividend of $28,000.

Required:

Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactions in an accompanying note.