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 $3,236,000 Expenses: Cost of goods sold $2,100,000 Operating expenses 888,000 Depreciation expense 30,000 Loss on sale of land 8,300 Interest expense 16,500 Income tax expense 51,000 Total expenses 3,093, 800 Net income $ 142,200 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets Investments Land Equipment Accumulated depreciation Total assets Liabilities and stockholders' 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 $226,580 $169,140 84,300 63,000 105,000 138.000 12,720 6,360 RE 108,000 0 213,000 246,000 276,000 213,000 (22,600 (42.600) $953.000 $792,900 $ 68, 700 6,300 15,300 $ 84,000 10,600 14,300 291,000 330,000 241,200 $953,000 228,000 330,000 126,000 $792,900 Additional Information for 2021: 1. Purchase investment in bonds for $108,000, 2. Sell land costing $33,000 for only $24,700, resulting in a $8,300 loss on sale of land. 3. Purchase $63,000 in equipment by issuing a $63,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $26,500. VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of land) Increase in accounts receivable Increase in prepaid rent Decrease in inventory Decrease in accounts payable Decrease in interest payable Increase in income tax payable OO 0 Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in bonds 0 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 Activities 0