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The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. $2,886,000 VIDEO PHONES, INC. Income Statement For the Year Ended December
The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. $2,886,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses : Cost of goods sold $1,800,000 Operating expenses 828,000 Depreciation expense 24,000 Loss on sale of land 7,700 Interest expense 13,500 -- Income tax expense 45,000 Total expenses Net income 2,718,200 $ 167,800 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable $ 196,620 77.70 $119, 460 57.000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash $ 196,620 77,700 105,000 10,080 $119,460 57,000 132,000 5,040 Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment 102, 207,000 234,000 264.eee 207.000 (65,400) (41,400) $ 897,000 $713,100 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 $ 63,300 5,700 14,700 $ 78,000 9,400 13,700 279,000 222,000 270,000 264,300 $ 897,000 270,000 120,000 $713,100 Additional Information for 2021: 1. Purchase investment in bonds for $102,000. 2. Sell land costing $27,000 for only $19,300, resulting in a $7,700 loss on sale of land. 3. Purchase $57,000 in equipment by issuing a $57,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $23,500. 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.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 $ 167,800 h Flows from Operating Activities: et income djustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of land) Increase in accounts receivable Decrease in accounts payable Decrease in interest payable Increase in income tax payable 24,000 7,700 27,000 Time S 226,56 Net cash flows from operating activities esh Flows from Investing Activities: Net cash flows from investing activities ish Flows from Financing Activities: Net cash flows from financing activities the beginning of the period the end of the period oncash Activities $
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