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				$	3,386,000
Expenses:
Cost of goods sold	$	2,200,000
Operating expenses		908,000
Depreciation expense		32,000
Loss on sale of land		8,500
Interest expense		17,500
Income tax expense		53,000
Total expenses					3,219,000
Net income				$	167,000

VIDEO PHONES, INC.
Balance Sheets
December 31
	2021				2020
Assets
Current assets:
Cash	$	270,300			$	185,900
Accounts receivable		86,500				65,000
Inventory		105,000				140,000
Prepaid rent		13,200				6,600
Long-term assets:
Investments		110,000				0
Land		215,000				250,000
Equipment		280,000				215,000
Accumulated depreciation		(75,000	)			(43,000	)
Total assets	$	1,005,000			$	819,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	70,500			$	86,000
Interest payable		6,500				11,000
Income tax payable		15,500				14,500
Long-term liabilities:
Notes payable		295,000				230,000
Stockholders' equity:
Common stock		350,000				350,000
Retained earnings		267,500				128,000
Total liabilities and stockholders equity	$	1,005,000			$	819,500

Additional Information for 2021:

1. Purchase investment in bonds for $110,000.
2. Sell land costing $35,000 for only $26,500, resulting in a $8,500 loss on sale of land.
3. Purchase $65,000 in equipment by issuing a $65,000 long-term note payable to the seller. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $27,500.

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.)