The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided.

VIDEO PHONES, INCORPORATED
Income Statement
For the Year Ended December 31, 2024
Net sales		$3,436,000
Expenses:
Cost of goods sold	$2,250,000
Operating expenses	918,000
Depreciation expense	33,000
Loss on sale of land	8,600
Interest expense	18,000
Income tax expense	54,000
Total expenses		3,281,600
Net income		$ 154,400

VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$267,160	$194,280
Accounts receivable	87,600	66,000
Inventory	105,000	141,000
Prepaid rent	13,440	6,720
Long-term assets:
Investments	111,000	0
Land	216,000	252,000
Equipment	282,000	216,000
Accumulated depreciation	(76,200)	(43,200)
Total assets	$1,006,000	$832,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 71,400	$ 87,000
Interest payable	6,600	11,200
Income tax payable	15,600	14,600
Long-term liabilities:
Notes payable	297,000	231,000
Stockholders' equity:
Common stock	360,000	360,000
Retained earnings	255,400	129,000
Total liabilities and stockholders equity	$1,006,000	$832,800

Additional Information for 2024:

1. Purchased investment in bonds for $111,000.
2. Sold land for $27,400. The land originally was purchased for $36,000, resulting in a $8,600 loss being recorded at the time of the sale.
3. Purchased $66,000 in equipment by issuing a $66,000 long-term note payable to the seller. No cash was exchanged in the transaction.
4. Declared and paid a cash dividend of $28,000.

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.)

Please keep in mind what I have entered so far and is surrounded in blue so is not verified and may not be 100% accurate.

Problem 11-4A (Algo) Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. Additional Information for 2024: 1. Purchased investment in bonds for $111,000. 2. Sold land for $27,400. The land originally was purchased for $36,000, resulting in a $8,600 loss being recorded at the time of the sale. 3. Purchased $66,000 in equipment by issuing a $66,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $28,000. 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|} \hline VIDEOPHONES,INCORPORATEDBalanceSheetsDecember31 & 2024 & 2023 \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline \multicolumn{3}{|l|}{ Current assets: } \\ \hline Cash & $267,160 & $194,280 \\ \hline Accounts receivable & 87,600 & 66,000 \\ \hline Inventory & 105,000 & 141,000 \\ \hline Prepaid rent & 13,440 & 6,720 \\ \hline \multicolumn{3}{|l|}{ Long-term assets: } \\ \hline Investments & 111,000 & 0 \\ \hline Land & 216,000 & 252,000 \\ \hline Equipment & 282,000 & 216,000 \\ \hline Accumulated depreciation & (76,200) & (43,200) \\ \hline Total assets & $1,006,000 & $832,800 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Stockholders' Equity } \\ \hline \multicolumn{3}{|l|}{ Current liabilities: } \\ \hline Accounts payable & $71,400 & $87,000 \\ \hline Interest payable & 6,600 & 11,200 \\ \hline Income tax payable & 15,600 & 14,600 \\ \hline \multicolumn{3}{|l|}{ Long-term liabilities: } \\ \hline Notes payable & 297,000 & 231,000 \\ \hline \multicolumn{3}{|l|}{ Stockholders' equity: } \\ \hline Common stock & 360,000 & 360,000 \\ \hline Retained earnings & 255,400 & 129,000 \\ \hline Total liabilities and stockholders' equity & $1,006,000 & $832,800 \\ \hline \end{tabular}