The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales Expenses: Cost of goods $1,850,000 sold Operating 838,000 expenses Depreciation 25,000 expense Loss on sale of 7,800 land Interest expense 14,000 Income tax 46,000 expense Total expenses Net income Assets $2,936,000 2,780,800 $ 155,200 VIDEO PHONES, INCORPORATED Balance Sheets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment December 31 Accumulated depreciation Total assets Liabilities and Stockholders' 2024 2023 $ $127,840 193,480 78,800 58,000 105,000 133,000 10,320 5,160 103,000 0 208,000 236,000 266,000 208,000 (66,600) (41,600) $898,000 $726,400 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: $ $ 64,200 79,000 5,800 14,800 9,600 13,800 281,000 223,000 280,000 280,000 252,200 121,000 $898,000 $726,400 1. Purchased investment in bonds for $103,000. 2. Sold land for $20,200. The land originally was purchased for $28,000, resulting in a $7,800 loss being recorded at the time of the sale. 3. Purchased $58,000 in equipment by issuing a $58,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $24,000. Required: Prepare the statement of cash flows for Video Phones, Incorporated, using the direct 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.)