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				$	3,636,000
Expenses:
Cost of goods sold	$	2,450,000
Operating expenses		958,000
Depreciation expense		37,000
Loss on sale of land		9,000
Interest expense		20,000
Income tax expense		58,000
Total expenses					3,532,000
Net income				$	104,000

VIDEO PHONES, INC.
Balance Sheets
December 31
	2021				2020
Assets
Current assets:
Cash	$	254,600			$	227,800
Accounts receivable		92,000				70,000
Inventory		105,000				145,000
Prepaid rent		14,400				7,200
Long-term assets:
Investments		115,000				0
Land		220,000				260,000
Equipment		290,000				220,000
Accumulated depreciation		(81,000	)			(44,000	)
Total assets	$	1,010,000			$	886,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	75,000			$	91,000
Interest payable		7,000				12,000
Income tax payable		16,000				15,000
Long-term liabilities:
Notes payable		305,000				235,000
Stockholders' equity:
Common stock		400,000				400,000
Retained earnings		207,000				133,000
Total liabilities and stockholders equity	$	1,010,000			$	886,000

Additional Information for 2021:

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, 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: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0