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, 2018 $3,636,000 Net sales Expenses $ 2,450,000 958,000 37,000 9,000 20,000 58,000 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses 3,532,000 Net income 104,000 VIDEO PHONES, INC Balance Sheet December 31 2018 2017 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent $254,600 $ 227,800 70,000 145,000 7,200 92,000 105,000 14,400 Long-term assets: Investments Land Equipment Accumulated depreciation 115,000 220,000 290,000 (81,000) 260,000 220,000 (44,000) $ 1,010,000 $ 886,000 Total assets Liabilities and Stockholders' Equity Current liabilities: 75,000 $ 91,000 12,000 15,000 Accounts payable Interest payable Income tax payable 7,000 16,000 305,000 400,000 Long-term liabilities: Notes payable 235,000 Stockholders' equity: 400,000 133,000 Common stock Retained earnings 207,000 $ 1,010,000 $ 886,000 Total liabilities and stockholders' equity Additional Information for 2018: 1. Purchase investment in bonds for $115,000. 2. Sell land costing $40,000 for only $31,000, resulting in a $9,000 loss on sale of land 3. Purchase $70,000 in equipment by issuing a $70,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $30,000 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, 2018 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: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities