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, 2018
Net sales		$	2,516,000
Expenses:
Cost of goods sold	$ 1,500,000
Operating expenses	768,000
Depreciation expense	18,000
Loss on sale of land	7,100
Interest expense	10,500
Income tax expense	39,000
Total expenses			2,342,600
Net income		$	173,400

VIDEO PHONES, INC. Balance Sheet December 31
	2018		2017
Assets
Current assets:
Cash	$	145,460	$	69,180
Accounts receivable		71,100		51,000
Inventory		105,000		126,000
Prepaid rent		8,640		4,320
Long-term assets:
Investments		96,000		0
Land		201,000		222,000
Equipment		252,000		201,000
Accumulated depreciation		(58,200)		(40,200)
Total assets	$	821,000	$	633,300
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	57,900	$	72,000
Interest payable		5,100		8,200
Income tax payable		14,100		13,100
Long-term liabilities:
Notes payable		267,000		216,000
Stockholders' equity:
Common stock		210,000		210,000
Retained earnings		266,900		114,000
Total liabilities and stockholders equity	$	821,000	$	633,300

Additional Information for 2018: 1. Purchase investment in bonds for $96,000. 2. Sell land costing $21,000 for only $13,900, resulting in a $7,100 loss on sale of land. 3. Purchase $51,000 in equipment by issuing a $51,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $20,500.

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, 2018 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash fows 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