The Income statement, balance sheets, and additional information for Video Phones, Inc., are provided. Net sales Expenses: VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $1,900,000 848,000 26,000 7,900 14,500 47,000 $2,986,000 2,843,400 $ 142,600 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 190,340 79,900 $136,220 59,000 105,000 134,000 10,560 5,280 104,000 209,000 238,000 268,000 209,000 (67,880) (41,880) $899,000 $739,700 Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable $ 65,100 5,900 14,900 $ 80,000 9,800 Income tax payable Long-term liabilities: Notes payable 13,900 283,000 224,000 Stockholders' equity: Common stock 290,000 290,000 Retained earnings 240,100 122,000 Total liabilities and stockholders' equity $899,000 $739,700 Additional Information for 2021: 1. Purchase Investment in bonds for $104,000. 2. Sell land costing $29,000 for only $21,100, resulting in a $7,900 loss on sale of land. 3. Purchase $59,000 in equipment by Issuing a $59,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $24,500. 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.) Cash Flows from Operating Activities: VIDEO PHONE 8, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Adjustments to reconcile net income to net cash flows from operating activities: Not cash flows from operating activities Cash Flows from Investing Activities: Not 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 The Income statement, balance sheets, and additional Information for Video Phones, Inc., are provided. Net sales Expenses: VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $1,900,000 848,000 26.000 7.900 14,500 47,000 $2,986,000 2,843,400 $ 142,600 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 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 $ 190,340 79,900 $136,220 59,000 105,000 134.000 10,560 5,280 104,000 209,000 238,000 268,000 209,000 (67,800) (41,800) $899,000 $739,700 $ 65,100 5,900 $ 90,000 9,800 Income tax payable Long-term liabilities: Notes payable Stockholders equity: Common sLock 14,900 13,900 283,000 224,000 290,000 290,000 Retained earnings 240,100 122,000 Total liabilities and stockholders' equity $ 899,000 $739,700 Additional Information for 2021 1. Purchase Investment in bonds for $104,000. 2 Sell land costing $29,000 for only $21100, resulting in a $7,900 loss on sale of land. 3. Purchase $59,000 in equipment by Issuing a $59,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $24,500. 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.) Cash Flows from Operating Activities: Not income VIDEO PHONES, INC. Statement of Cach Flowe For the Year Ended December 31, 2021 Adjustments to reconcile not income to not cash flows from operating activities. Depreciation expense Loss (on sale of land) Increase in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in accounts payable Decrease in interest payabl Increase in income tax payable Not cash flows from operating activities Cash Flows from Investing Activities Proceeds from make of land Not cash flows from invering activities Cash Flows from Financiha tu ter Payment of darn dividends Net cash flows tion that in savitka Cash at the beginning of the pen S 0