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, 2018
Net sales		$	2,696,000
Expenses:
Cost of goods sold	$ 1,650,000
Operating expenses	798,000
Depreciation expense	21,000
Loss on sale of land	7,400
Interest expense	12,000
Income tax expense	42,000
Total expenses			2,530,400
Net income		$	165,600

VIDEO PHONES, INC. Balance Sheet December 31
	2018		2017
Assets
Current assets:
Cash	$	166,040	$	94,320
Accounts receivable		74,400		54,000
Inventory		105,000		129,000
Prepaid rent		9,360		4,680
Long-term assets:
Investments		99,000		0
Land		204,000		228,000
Equipment		258,000		204,000
Accumulated depreciation		(61,800)		(40,800)
Total assets	$	854,000	$	673,200
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	60,600	$	75,000
Interest payable		5,400		8,800
Income tax payable		14,400		13,400
Long-term liabilities:
Notes payable		273,000		219,000
Stockholders' equity:
Common stock		240,000		240,000
Retained earnings		260,600		117,000
Total liabilities and stockholders equity	$	854,000	$	673,200

Additional Information for 2018: 1. Purchase investment in bonds for $99,000. 2. Sell land costing $24,000 for only $16,600, resulting in a $7,400 loss on sale of land. 3. Purchase $54,000 in equipment by borrowing $54,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $22,000.

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.) VIDEO PHONES, INC Statement of Cash Flows For the Year Ended December 31, 2018 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