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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,

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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 $2,936,000 Expenses: Cost of goods sold $1,850,000 Operating expenses 838,000 Depreciation expense 25 , Loss on sale of land 7,800 Interest expense 14 , Income tax expense 46,000 Total expenses 2,780,800 Net income $ 155,200 VIDEO PHONES, INC Balance Sheets December 31 2021 2020 $ 193,480 78,800 105,000 10,320 $127,840 58,000 133,000 5,160 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 103,000 28 , 266,000 (66,600) $ 898,000 B 236, eee 208,000 (41,600) $726, 400 $ 64,200 5,800 14.800 $ 79,000 9,600 13,800 PHONES, INC. Balance Sheets December 31 2021 2020 $ 193,480 78,888 105, eee 10,320 $127,840 58,000 133,000 5,160 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 103,000 208,000 266,000 (66,600) $ 898,000 236,000 208,000 (41,600) $726,400 $ 64,200 5,800 14,800 $ 79,000 9,600 13,800 281,800 223 , 280,000 252,200 $ 898,000 280,000 121,000 $726,400 Additional Information for 2021: 1. Purchase investment in bonds for $103,000. 2. Sell land costing $28,000 for only $20,200, resulting in a $7,800 loss on sale of land, 3. Purchase $58,000 in equipment by issuing a $58,000 long term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $24.000 transactions 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 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 Activities

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