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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,
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 $226,580 84,300 105,000 12,720 $169, 140 63,000 138,000 6,360 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 108,000 213,000 276,000 (72,600) $953,000 0 246,000 213,000 (42,600) $ 792,900 $ 68,700 6,300 15,300 $ 84,000 10,600 14,300 291,000 228,000 330,000 241,700 $953,000 330,000 126,000 $ 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. Required: Prepare the statement of cash flows using the Indirect method. Disclose any noncosh 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: $ 0 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 $ 0
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