The income statement, balance sheets, and additional information for Video Phones, Inc., are provided VIDEO PRONES, INC. Income Statement Tor the Year Ended December 31, 2021 Net sales $3,386,000 Expenses Cont of goods sold $2,200,000 Operating expenses 900.000 Depreciation expense 32,000 Loss on sale of land 8,500 Interest expense 17,500 Income tax expense 33.000 Total expenses 3,219.000 Net Income $ 167,000 VIDEO PRONES, INC. Balance Sheets December 31 2021 2020 $ 270,300 86,500 105,000 13,200 $185,900 65,000 140,000 6,600 Assets Current stat Cash Accounts receivable Inventory Prepaid rent Long-tern assets Investments Land Equipment Accumulated depreciation Total assets Liabilities and stockholders' Equity Current Liabilities Accounts payable Interest payable Income tax payable Long-tern Liabilities Notes payable Stockholders' equitys Common stock Retained earnings Total liabilities and stockholders' equity 110,000 215,000 280,000 (75,000) $1,005,000 0 250,000 215,000 (3.000) $19,500 70,500 6,500 15,500 $ 16,000 11,000 24,500 295,000 230,000 350,000 267,500 $1,005,000 350,000 128,000 $819,500 Additional Information for 2021: 1 Purchase investment in bonds for $110,000 2.Sell land costing $35,000 for only $26,500, resulting in a $8,500 loss on sale of land, 3. Purchase $65,000 in equipment by Issuing a $65,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $27,500 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.) Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash trasactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net 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 Activites