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 $3,336,000 Expenses: Cost of goods sold $2,150,000 Operating expenses 898,000 Depreciation expense 31,000 LOSs on sale of land 8,400 Interest expense 17,000 Income tax expense 52,000 Total expenses 3,156,400 Net income $ 179,600 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 273,440 85,400 105,000 12,960 $177,520 64,000 139,000 6,480 2015 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 109,000 214,000 278,000 (73,800) $1,004,000 248,000 214,000 (42,800) $806,200 69,600 6,400 15,400 $ 85,000 10,800 14,400 229,000 293,000 340,000 279,600 $1,004,000 340,000 127,000 $806,200 Additional Information for 2021 1. Purchase investment in bonds for $109,000 2. Sell land costing $34,000 for only $25,600, resulting in a $8,400 loss on sale of land, 3. Purchase $64,000 in equipment by issuing a 564,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $27.000 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.) VIDEO PHONES, INC Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities Depreciation expense Loss (on sale of land) Increase in accounts receivable Increase in prepaid rent Decrease in inventory Decrease in accounts payable Decrease in interest payable Increase in income tax payable Increase in accounts receivable Increase in prepaid rent Decrease in inventory Decrease in accounts payable Decrease in interest payable Increase in income tax payable Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in bonds Loss (on sale of land) Net cash flows from investing activities Cash Flows from Financing Activities: Payment of cash dividends + Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Purchase of equipment