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				$	2,636,000
Expenses:
Cost of goods sold	$	1,600,000
Operating expenses		788,000
Depreciation expense		20,000
Loss on sale of land		7,300
Interest expense		11,500
Income tax expense		41,000
Total expenses					2,467,800
Net income				$	168,200

VIDEO PHONES, INC.
Balance Sheets
December 31
	2021				2020
Assets
Current assets:
Cash	$	159,180			$	85,940
Accounts receivable		73,300				53,000
Inventory		105,000				128,000
Prepaid rent		9,120				4,560
Long-term assets:
Investments		98,000				0
Land		203,000				226,000
Equipment		256,000				203,000
Accumulated depreciation		(60,600	)			(40,600	)
Total assets	$	843,000			$	659,900
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	59,700			$	74,000
Interest payable		5,300				8,600
Income tax payable		14,300				13,300
Long-term liabilities:
Notes payable		271,000				218,000
Stockholders' equity:
Common stock		230,000				230,000
Retained earnings		262,700				116,000
Total liabilities and stockholders equity	$	843,000			$	659,900

Additional Information for 2021:

1. Purchase investment in bonds for $98,000.
2. Sell land costing $23,000 for only $15,700, resulting in a $7,300 loss on sale of land.
3. Purchase $53,000 in equipment by issuing a $53,000 long-term note payable to the seller. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $21,500.

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.)