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				$	3,086,000
Expenses:
Cost of goods sold	$	2,000,000
Operating expenses		868,000
Depreciation expense		28,000
Loss on sale of land		8,100
Interest expense		15,500
Income tax expense		49,000
Total expenses					2,968,600
Net income				$	117,400

VIDEO PHONES, INC.
Balance Sheets
December 31
	2021				2020
Assets
Current assets:
Cash	$	182,860			$	152,380
Accounts receivable		82,100				61,000
Inventory		105,000				136,000
Prepaid rent		12,240				6,120
Long-term assets:
Investments		106,000				0
Land		211,000				242,000
Equipment		272,000				211,000
Accumulated depreciation		(70,200	)			(42,200	)
Total assets	$	901,000			$	766,300
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	66,900			$	82,000
Interest payable		6,100				10,200
Income tax payable		15,100				14,100
Long-term liabilities:
Notes payable		287,000				226,000
Stockholders' equity:
Common stock		310,000				310,000
Retained earnings		215,900				124,000
Total liabilities and stockholders equity	$	901,000			$	766,300

Additional Information for 2021:

1. Purchase investment in bonds for $106,000.
2. Sell land costing $31,000 for only $22,900, resulting in a $8,100 loss on sale of land.
3. Purchase $61,000 in equipment by issuing a $61,000 long-term note payable to the seller. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $25,500.

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: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities