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 Expenses: $3,386,000 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $2,200,000 908,000 32,000 8,500 17,500 53,000 Total expenses 3,219,000 $167,000 Net income VIDEO PHONES, INC Balance Sheets December 31 2021 2020 AssetS Current assets: $ 270,300 $185,900 65,000 140,000 6,600 Cash Accounts receivable Inventory Prepaid rent 86,500 105,000 13,200 Long-term assets: Investments Land Equipment Accumulated depreciation 110,000 215,000 280,000 75,000 250,000 215,000 43,000 $1,005,ee0 $819,500 Total assets Liabilities and Stockholders' Equity Current liabilities: $86,000 11,000 14,500 $70,500 6,500 15,500 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable 295,000 230,000 Stockholders' equity: Common stock Retained earnings 350,000 128,000 $1,005,000 819,500 350,000 267,500 Total liabilities and stockholders' equity Additional Information for 2021: 1. Purchase investment in bonds for $110,000. 2. Sell land costing $35,000 for only $26,500, resulting in a $8,500 loss on sale of land 3. Purchase $65,000 in equipment by issuing a $65,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4 Declare and pay a cash dividend of $27,500. VIDEO PHONES, INC Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities