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 $2,456,000 Expenses: Cost of goods sold $1,450,000 Operating expenses 758,000 Depreciation expense 17,000 Loss on sale of land 7,000 Interest expense 10,000 Income tax expense 38,000 Total expenses 2,280,000 Net income $ 176,000 es VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $138,600 70,000 105,000 8,400 $ 60,800 50,000 125,000 4,200 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 95,000 200,000 250,000 (57,000) $810,000 220,000 200,000 (40,000) $620,000 $ 57,000 5,000 14,000 $ 71,000 8,000 13,000 265,000 215,000 200.000 200.000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments $138,600 70,000 105,880 8,400 $ 60,800 50,000 125,000 4,200 Land 95,000 200,000 250,000 (57,000) $810,000 220,000 200,000 (40,000) $620,000 Equipnent Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Conmon stock Retained earnings Total liabilities and stockholders' equity $ 57,000 5,000 14,000 $ 71,000 8,000 13,000 265,000 215,000 200,000 269,000 5810,000 200,000 113,000 $620,000 Additional Information for 2021: 1. Purchase investment in bonds for $95.000 2. Selllond costing $20,000 for only $3,000, resulting in a $7,000 loss on sale of land. 3. Purchase $50,000 in equipment byssuing a $50,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $20,000 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: 5 $ 0 Net cash flows from operating activities Cash Flows from Investing Activities: 0 Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities 0 $ 0 Net cash flows from operating activities Cash Flows from Investing Activities: 0 5 Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0