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		$	3,636,000
Expenses:
Cost of goods sold	$ 2,450,000
Operating expenses	958,000
Depreciation expense	37,000
Loss on sale of land	9,000
Interest expense	20,000
Income tax expense	58,000
Total expenses			3,532,000
Net income		$	104,000

VIDEO PHONES, INC. Balance Sheets December 31
	2018		2017
Assets
Current assets:
Cash	$	254,600	$	227,800
Accounts receivable		92,000		70,000
Inventory		105,000		145,000
Prepaid rent		14,400		7,200
Long-term assets:
Investments		115,000		0
Land		220,000		260,000
Equipment		290,000		220,000
Accumulated depreciation		(81,000)		(44,000)
Total assets	$	1,010,000	$	886,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	75,000	$	91,000
Interest payable		7,000		12,000
Income tax payable		16,000		15,000
Long-term liabilities:
Notes payable		305,000		235,000
Stockholders' equity:
Common stock		400,000		400,000
Retained earnings		207,000		133,000
Total liabilities and stockholders equity	$	1,010,000	$	886,000

Additional Information for 2018:

1. Purchase investment in bonds for $115,000.

2. Sell land costing $40,000 for only $31,000, resulting in a $9,000 loss on sale of land.

3. Purchase $70,000 in equipment by borrowing $70,000 with a note payable due in three years. No cash is exchanged in the transaction.

4. Declare and pay a cash dividend of $30,000.

Required:

Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactions in an accompanying note.