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 $ 3,086,000 Expenses: Cost of goods sold $ 2,000,000 Operating expenses 868,000 Depreciation expense 28,000 Loss on sale of land 8,100 Interest expense 15,500 Income tax expense 49,000 Total expenses 2,968,600 Net income $ 117,400 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash $ 182,860 $ 152,380 Accounts receivable 82,100 61,000 Inventory 105,000 136,000 Prepaid rent 12,240 6,120 Long-term assets: Investments 106,000 0 Land 211,000 242,000 Equipment 272,000 211,000 Accumulated depreciation (70,200 ) (42,200 ) Total assets $ 901,000 $ 766,300 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 66,900 $ 82,000 Interest payable 6,100 10,200 Income tax payable 15,100 14,100 Long-term liabilities: Notes payable 287,000 226,000 Stockholders' equity: Common stock 310,000 310,000 Retained earnings 215,900 124,000 Total liabilities and stockholders equity $ 901,000 $ 766,300 Additional Information for 2021: Purchase investment in bonds for $106,000. Sell land costing $31,000 for only $22,900, resulting in a $8,100 loss on sale of land. Purchase $61,000 in equipment by issuing a $61,000 long-term note payable to the seller. No cash is exchanged in the transaction. Declare and pay a cash dividend of $25,500. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note