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 $2,636,000 Expenses: Cost of goods sold $1,600,000 Operating expenses 788,000 Depreciation expense 20,000 Loss on sale of land 7,300 Interest expense 11,500 Income tax expense 41,000 Total expenses 2,467,800 Net income $ 168,200 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $159, 180 73,300 105,000 9, 120 $ 85,940 53,000 128,000 4,560 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 98,000 203,000 256,000 (60,600) $843,000 226,000 203,000 (40,600) $659,900 $ 59, 700 5,300 14,300 $ 74,000 8,600 13,300 271,000 218,000 230,000 230,000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 85,940 53,000 128,000 4,560 $159, 180 73,300 105,000 9,120 98,000 203,000 256,000 (60,600) $843,000 0 226,000 203,000 (40,600) $659,900 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 $ 59,700 5,300 14,300 $ 74,000 8,600 13,300 271,000 218,000 230,000 262,700 $843,000 230,000 116,000 $659,900 Additional Information for 2021: 1. Purchase investment in bonds for $98.000. 2. Sell land costing $23,000 for only $15,700, resulting in a $7,300 loss on sale of land. 3. Purchase $53,000 in equipment by ssuing a $53,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $21,500. Required: Prepare the statement of cash flows fo Video Phones, Inc., using the direct 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: 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 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 100
