The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided.

VIDEO PHONES, INCORPORATED
Income Statement
For the Year Ended December 31, 2024
Net sales		$2,756,000
Expenses:
Cost of goods sold	$1,700,000
Operating expenses	808,000
Depreciation expense	22,000
Loss on sale of land	7,500
Interest expense	12,500
Income tax expense	43,000
Total expenses		2,593,000
Net income		$ 163,000

VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$ 172,900	$102,700
Accounts receivable	75,500	55,000
Inventory	105,000	130,000
Prepaid rent	9,600	4,800
Long-term assets:
Investments	100,000	0
Land	205,000	230,000
Equipment	260,000	205,000
Accumulated depreciation	(63,000)	(41,000)
Total assets	$865,000	$686,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 61,500	$ 76,000
Interest payable	5,500	9,000
Income tax payable	14,500	13,500
Long-term liabilities:
Notes payable	275,000	220,000
Stockholders' equity:
Common stock	250,000	250,000
Retained earnings	258,500	118,000
Total liabilities and stockholders equity	$865,000	$686,500

Additional Information for 2024:

Purchased investment in bonds for $100,000.

Sold land for $17,500. The land originally was purchased for $25,000, resulting in a $7,500 loss being recorded at the time of the sale.

Purchased $55,000 in equipment by issuing a $55,000 long-term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $22,500.

Required:

Prepare the statement of cash flows for Video Phones, Incorporated, using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)