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, 2021 Net sales $ 2,576,000 Expenses: Cost of goods sold $ 1,550,000 Operating expenses 778,000 Depreciation expense 19,000 Loss on sale of land 7,200 Interest expense 11,000 Income tax expense 40,000 Total expenses 2,405,200 Net income $ 170,800

VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash $ 152,320 $ 77,560 Accounts receivable 72,200 52,000 Inventory 105,000 127,000 Prepaid rent 8,880 4,440 Long-term assets: Investments 97,000 0 Land 202,000 224,000 Equipment 254,000 202,000 Accumulated depreciation (59,400 ) (40,400 ) Total assets $ 832,000 $ 646,600 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 58,800 $ 73,000 Interest payable 5,200 8,400 Income tax payable 14,200 13,200 Long-term liabilities: Notes payable 269,000 217,000 Stockholders' equity: Common stock 220,000 220,000 Retained earnings 264,800 115,000 Total liabilities and stockholders' equity $ 832,000 $ 646,600

Additional Information for 2021:

1. Purchase investment in bonds for $97,000.
2. Sell land costing $22,000 for only $14,800, resulting in a $7,200 loss on sale of land.
3. Purchase $52,000 in equipment by issuing a $52,000 long-term note payable to the seller. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $21,000.

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.)