The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided Additional Information for 2024: 1. Purchased investment in bonds for $115,000. 2. 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. 3. Purchased $70,000 in equipment by issuing a $70,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. 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. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ VIDEO PHONES, INCORPORATED } \\ \hline \multicolumn{4}{|c|}{ Statement of Cash Flows } \\ \hline \multicolumn{4}{|c|}{ For the Year Ended December 31, 2024} \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Operating Activities: } \\ \hline Net income & 2 & 104,000 & \\ \hline \multicolumn{4}{|c|}{ Adjustments to reconcile net income to net cash flows from operating activities: } \\ \hline Depreciation expense & 0 & 37,000 & \\ \hline Loss (on sale of land) & 2 & 9,000 & \\ \hline Purchase investment in bonds & ( & 22,000 & \\ \hline Decrease in inventory & 0 & 40,000 & \\ \hline Increase in prepaid rent & 0 & 7,200 & \\ \hline Decrease in accounts payable & 0 & 16,000 & \\ \hline Decrease in interest payable & 0 & 5,000 & \\ \hline Increase in income tax payable & 0 & 1,0000 & \\ \hline Net cash flows from operating activities & & & $241,200 \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Investing Activities: } \\ \hline Purchase investment in bonds & 0 & 115,000 & \\ \hline Gain (on sale of land) & & 31,0000 & \\ \hline Net cash flows from investing activities & & & 146,000 \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Financing Activities: } \\ \hline Payment of cash dividends & 0 & 30,000 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Purchase investment in bonds & & 22,000 & \\ \hline Decrease in inventory & 2 & 40,000 & \\ \hline Increase in prepaid rent & & 7,200 & \\ \hline Decrease in accounts payable & 0 & 16,000x & \\ \hline Decrease in interest payable & 0 & 5,000 & \\ \hline Increase in income tax payable & & 1,000 & \\ \hline & & & \\ \hline Net cash flows from operating activities & & & \$ 241,200 \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Investing Activities: } \\ \hline Purchase investment in bonds & 0 & 115,000 & \\ \hline Gain (on sale of land) & & 31,000 & \\ \hline Net cash flows from investing activities & & & 146,000 \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Financing Activities: } \\ \hline Payment of cash dividends & Os & 30,000 & \\ \hline Net cash flows from financing activities & & & 30,000 \\ \hline Net increase in cash & & & 26,800 \\ \hline Cash at the beginning of the period & & & 227.8000 \\ \hline Cash at the end of the period & & & $254,600 \\ \hline \multicolumn{4}{|l|}{ Note: Noncash Activities } \\ \hline Purchase equipment by issuing a note payable & 0 & & 70,0000 \\ \hline \end{tabular}