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				$	2,936,000
Expenses:
Cost of goods sold	$	1,850,000
Operating expenses		838,000
Depreciation expense		25,000
Loss on sale of land		7,800
Interest expense		14,000
Income tax expense		46,000
Total expenses					2,780,800
Net income				$	155,200

VIDEO PHONES, INC.
Balance Sheets
December 31
	2021		2020
Assets
Current assets:
Cash	$	193,480			$	127,840
Accounts receivable		78,800				58,000
Inventory		105,000				133,000
Prepaid rent		10,320				5,160
Long-term assets:
Investments		103,000				0
Land		208,000				236,000
Equipment		266,000				208,000
Accumulated depreciation		(66,600	)			(41,600	)
Total assets	$	898,000			$	726,400
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	64,200			$	79,000
Interest payable		5,800				9,600
Income tax payable		14,800				13,800
Long-term liabilities:
Notes payable		281,000				223,000
Stockholders' equity:
Common stock		280,000				280,000
Retained earnings		252,200				121,000
Total liabilities and stockholders equity	$	898,000			$	726,400

Additional Information for 2021:

1. Purchase investment in bonds for $103,000.
2. Sell land costing $28,000 for only $20,200, resulting in a $7,800 loss on sale of land.
3. Purchase $58,000 in equipment by issuing a $58,000 long-term note payable to the seller. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $24,000.

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.)