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 $$3,636,000$

Expenses:

Cost of goods sold $$2,450,000$

Operating expenses $958,000$

Depreciation expense $37,000$

Loss on sale of land $9,000$

Interest expense $20,000$

Income tax expense $58,000$

Total expenses $3,532,000$

Net income $ $104,000$

VIDEO PHONES, INCORPORATED

Balance Sheets

December $31$

$20242023$

Assets

Current assets:

Cash $ $254,600$ $ $227,800$

Accounts receivable $92,00070,000$

Inventory $105,000145,000$

Prepaid rent $14,4007,200$

Long$-$term assets:

Investments $115,0000$

Land $220,000260,000$

Equipment $290,000220,000$

Accumulated depreciation $(81,000)(44,000)$

Total assets $$1,010,000$ $$886,000$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $75,000$ $ $91,000$

Interest payable $7,00012,000$

Income tax payable $16,00015,000$

Long$-$term liabilities:

Notes payable $305,000235,000$

Stockholders' equity:

Common stock $400,000400,000$

Retained earnings $207,000133,000$

Total liabilities and stockholders$$ equity $$1,010,000$ $$886,000$

Additional Information for $2024$:

Purchased investment in bonds for $$115,000.$

Sold land for $$31,000.$ The land originally was purchased for $$40,000,$ resulting in a $$9,000$ loss being recorded at the time of the sale.

Purchased $$70,000$ in equipment by issuing a $$70,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$30,000.$

Required:

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note.