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 $$2,696,000$

Expenses:

Cost of goods sold $$1,650,000$

Operating expenses $798,000$

Depreciation expense $21,000$

Loss on sale of land $7,400$

Interest expense $12,000$

Income tax expense $42,000$

Total expenses $2,530,400$

Net income $ $165,600$

VIDEO PHONES, INCORPORATED

Balance Sheets

December $31$

$20242023$

Assets

Current assets:

Cash $$166,040$ $$94,320$

Accounts receivable $74,40054,000$

Inventory $105,000129,000$

Prepaid rent $9,3604,680$

Long$-$term assets:

Investments $99,0000$

Land $204,000228,000$

Equipment $258,000204,000$

Accumulated depreciation $(61,800)(40,800)$

Total assets $$854,000$ $$673,200$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $60,600$ $ $75,000$

Interest payable $5,4008,800$

Income tax payable $14,40013,400$

Long$-$term liabilities:

Notes payable $273,000219,000$

Stockholders' equity:

Common stock $240,000240,000$

Retained earnings $260,600117,000$

Total liabilities and stockholders$$ equity $$854,000$ $$673,200$

Additional Information for $2024$:

Purchased investment in bonds for $$99,000.$

Sold land for $$16,600.$ The land originally was purchased for $$24,000,$ resulting in a $$7,400$ loss being recorded at the time of the sale.

Purchased $$54,000$ in equipment by issuing a $$54,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$22,000.$

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.$)$