The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. Net sales Expenses: VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,000,000 858,000 28,000 8,100 15,500 49,000 $3,086,000 2,968,600 $ 117,400 VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent $182,860 82,100 $152,380 105,000 61,000 136,000 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 5766,300 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 Additional Information for 2024: 1. Purchased investment in bonds for $106,000. $82,000 $ 66,900 6,100 15,190 10,200 14,100 287,000 225,000 310,000 215,900 310,000 124,000 5901,000 5766,300 2. Sold land for $22,900. The land originally was purchased for $31,000, resulting in a $8,100 loss being recorded at the time of the sale 3. Purchased $61,000 in equipment by issuing a $61,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid 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 (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) Retum For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of land) Increase in accounts recewable Decrease in inventory Increase in prepaid rent Decrease in accounts payable Decrease in interest payable Increase in income tax payable Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: 117,400 28,000 8,100 (21,100) 31,000 (6,120) (15,100) (4.100) 1,000 $ 139,080 Increase in income tax payable Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from infasting activities Cash Flows from Financing Activities Purchase investment in bonds Proceeds from sale of land Net cash flows from financing activities Net decrease in cash Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Purchase of equipment 1,000 s (106,000) O 22,900 S 139,080 (83,100) (25.500) 0 30,480 S 4,000 S 61,000 O