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, 2018 Net sales $ 2,636,000 Expenses: Cost of goods sold $ 1,600,000 Operating expenses 788,000 Depreciation expense 20,000 Loss on sale of land 7,300 Interest expense 11,500 Income tax expense 41,000 Total expenses 2,467,800 Net income $ 168,200 VIDEO PHONES, INC. Balance Sheet December 31 2018 2017 Assets Current assets: Cash $ 159,180 $ 85,940 Accounts receivable 73,300 53,000 Inventory 105,000 128,000 Prepaid rent 9,120 4,560 Long-term assets: Investments 98,000 0 Land 203,000 226,000 Equipment 256,000 203,000 Accumulated depreciation (60,600) (40,600) Total assets $ 843,000 $ 659,900 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 59,700 $ 74,000 Interest payable 5,300 8,600 Income tax payable 14,300 13,300 Long-term liabilities: Notes payable 271,000 218,000 Stockholders' equity: Common stock 230,000 230,000 Retained earnings 262,700 116,000 Total liabilities and stockholders equity $ 843,000 $ 659,900 Additional Information for 2018: 1. Purchase investment in bonds for $98,000. 2. Sell land costing $23,000 for only $15,700, resulting in a $7,300 loss on sale of land. 3. Purchase $53,000 in equipment by borrowing $53,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $21,500. 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.)