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		$2,456,000
Expenses:
Cost of goods sold	$1,450,000
Operating expenses	758,000
Depreciation expense	17,000
Loss on sale of land	7,000
Interest expense	10,000
Income tax expense	38,000
Total expenses		2,280,000
Net income		$ 176,000

VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$138,600	$60,800
Accounts receivable	70,000	50,000
Inventory	105,000	125,000
Prepaid rent	8,400	4,200
Long-term assets:
Investments	95,000	0
Land	200,000	220,000
Equipment	250,000	200,000
Accumulated depreciation	(57,000)	(40,000)
Total assets	$810,000	$620,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 57,000	$ 71,000
Interest payable	5,000	8,000
Income tax payable	14,000	13,000
Long-term liabilities:
Notes payable	265,000	215,000
Stockholders' equity:
Common stock	200,000	200,000
Retained earnings	269,000	113,000
Total liabilities and stockholders equity	$810,000	$620,000

Additional Information for 2024:

Purchased investment in bonds for $95,000.

Sold land for $13,000. The land originally was purchased for $20,000, resulting in a $7,000 loss being recorded at the time of the sale.

Purchased $50,000 in equipment by issuing a $50,000 long-term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $20,000.

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.)

VIDEO PHONES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities