The income statement, balance sheets, and additional information for Communication Accessories are provided.

Communication Accessories

Income Statement

For the Year Ended December 31, 2021

Revenues		$2,800,000
Gain on sale of land		4,000
Total revenues		2,804,000
Expenses:
Cost of goods sold	1,900,000
Operating expenses	575,000
Depreciation expense	38,000
Interest expense	16,000
Income tax expense	63,000
Total expenses		2,592,000
Net Income		$212,000

Communication Accessories

Balance Sheets

December 31

Assets	2021	2020
Current Assets:
Cash	$182,000	$187,000
Accounts receivable	83,000	95,000
Inventory	121,000	138,000
Prepaid rent	7,000	5,000
Long-Term Assets:
Investment in stock	195,000	100,000
Land	230,000	260,000
Equipment	305,000	225,000
Accumulated depreciation	(138,000)	(100,000)
Total Assets	$985,000	$910,000
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable	$40,000	$58,000
Interest payable	1,000	2,000
Income tax payable	12,000	10,000
Long-Term Liabilities:
Notes payable	285,000	205,000
Stockholders' Equity:
Common stock	350,000	350,000
Retained earnings	297,000	285,000
Total Liabilities and Equity	$985,000	$910,000

Additional Information for 2021:

1. Purchase additional investment in stocks for $95,000.

2. Sell land costing $30,000 for $34,000 resulting in a $4,000 gain on sale of land.

3. Purchase $80,000 in equipment by borrowing $80,000 with a note payable due in three years. No cash is exchanged in the transaction.

4. The company declares and pays a cash dividend of $200,000.

Required:

1. Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note.