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		$2,576,000
Expenses:
Cost of goods sold	$1,550,000
Operating expenses	778,000
Depreciation expense	19,000
Loss on sale of land	7,200
Interest expense	11,000
Income tax expense	40,000
Total expenses		2,405,200
Net income		$ 170,800

VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$152,320	$77,560
Accounts receivable	72,200	52,000
Inventory	105,000	127,000
Prepaid rent	8,880	4,440
Long-term assets:
Investments	97,000	0
Land	202,000	224,000
Equipment	254,000	202,000
Accumulated depreciation	(59,400)	(40,400)
Total assets	$832,000	$646,600
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 58,800	$ 73,000
Interest payable	5,200	8,400
Income tax payable	14,200	13,200
Long-term liabilities:
Notes payable	269,000	217,000
Stockholders' equity:
Common stock	220,000	220,000
Retained earnings	264,800	115,000
Total liabilities and stockholders equity	$832,000	$646,600

Additional Information for 2024:

1. Purchased investment in bonds for $97,000.
2. Sold land for $14,800. The land originally was purchased for $22,000, resulting in a $7,200 loss being recorded at the time of the sale.
3. Purchased $52,000 in equipment by issuing a $52,000 long-term note payable to the seller. No cash was exchanged in the transaction.
4. Declared and paid a cash dividend of $21,000.

Required:

Prepare the statement of cash flows using the indirect 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.)

VIDEO PHONES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 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: \begin{tabular}{|l|l|l|l|} \hline & \multicolumn{1}{|c|}{} \\ \hline Net cash flows from financing activities \\ \hline Cash at the beginning of the period & & \\ \hline Cash at the end of the period & & \\ \hline Note: Noncash Activities & & \\ \hline \end{tabular}