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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,

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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, B6,000 Expenses: Cost of goods sold $2,000,000 Operating expenses 868,000 Depreciation expense 28,000 Loss on sale of land 8, 100 Interest expense 15,500 Income tax expense 49,000 Total expenses 2,968, 600 Net income $ 117,400 VIDEO PHONES, INC. Balance Sheets December 31 2821 2020 Assets Current assets: Cash Accounts receivable $182,860 82, 100 $152,380 61,000 AF AA 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, B6,000 Expenses: Cost of goods sold $2,000,000 Operating expenses 868,000 Depreciation expense 28,000 Loss on sale of land 8, 100 Interest expense 15,500 Income tax expense 49,000 Total expenses 2,968, 600 Net income $ 117,400 VIDEO PHONES, INC. Balance Sheets December 31 2821 2020 Assets Current assets: Cash Accounts receivable $182,860 82, 100 $152,380 61,000 AF AA VIDEO PHONES, INC. Balance Sheets December 31 2821 2820 $182,860 82, 100 105,000 12,240 106,000 211,000 272,000 (70, 200) $901,000 $152,380 61,000 136,000 6,120 0 242,000 211,000 (42,200) $766,300 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 $ 66,900 6,100 15, 100 287,000 $ 82,000 10, 200 14,100 226,000 310, 800 124,000 $766,300 310,000 215,900 $901,000 Additional Information for 2021: 1. Purchase investment in bonds for $106,000. 2. Sell land costing $31,000 for only $22,900, resulting in a $8,100 loss on sale of land. 3. Purchase $61,000 in equipment by issuing a $61,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $25,500 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 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities: es 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

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