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 $1,450,000 $2,456,000 758,000 17,000 7,000 10,000 38,000 2,280,000 $ 176,000 VIDEO PHONES, INCORPORATED Balance Sheets December 31 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets 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: 2024 2023 $138,600 70,000 $60,800 50,000 105,000 8,400 125,000 4,200 95,000 0 200,000 220,000 250,000 200,000 (57,000) (40,000) $810,000 $620,000 $ 57,000 $ 71,000 5,000 14,000 8,000 13,000 265,000 215,000 200,000 200,000 269,000 113,000 $810,000 $620,000 1. Purchased investment in bonds for $95,000. 2. Sold land for $13,000. The land originally was purchased for $20,000, resulting in a $7,000 loss being recorded at the time of the sale. 3. Purchased $50,000 in equipment by issuing a $50,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $20,000. 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.) Cash Flows from Operating Activities: VIDEO PHONES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 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