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		$	2,816,000
Expenses:
Cost of goods sold	$ 1,750,000
Operating expenses	818,000
Depreciation expense	23,000
Loss on sale of land	7,600
Interest expense	13,000
Income tax expense	44,000
Total expenses			2,655,600
Net income		$	160,400

VIDEO PHONES, INC. Balance Sheet December 31
	2015		2014
Assets
Current assets:
Cash	$	179,760	$	111,080
Accounts receivable		76,600		56,000
Inventory		105,000		131,000
Prepaid rent		9,840		4,920
Long-term assets:
Investments		101,000		0
Land		206,000		232,000
Equipment		262,000		206,000
Accumulated depreciation		(64,200)		(41,200)
Total assets	$	876,000	$	699,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	62,400	$	77,000
Interest payable		5,600		9,200
Income tax payable		14,600		13,600
Long-term liabilities:
Notes payable		277,000		221,000
Stockholders' equity:
Common stock		260,000		260,000
Retained earnings		256,400		119,000
Total liabilities and stockholders equity	$	876,000	$	699,800

Additional Information for 2015:
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 borrowing $56,000 with a note payable due in three years. 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.