The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VI DEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 $3,636, 000 Net sales Expenses: Cost of goods sold Operat ing expenses Depreciat ion expense Loss on sale of land 10 $2, 450, 000 958, 000 37,000 9,000 20,000 58, 000 polnts X 02:04:24 Interest expense Income tax expense Total expenses Skipped 3,532, 000 $ 104, 000 Net income VIDEO PHONES, INC. Balance Sheets December 31 eBook 2021 2020 Assets Current assets: Cash Accounts recei vable Inventory Prepaid rent Long-term assets: Investments Land Equ i pment Accumulated depreciation References $ 254, 600 92, 000 105, 000 14, 400 $227, 800 70, 000 145, 000 7, 200 115, 000 220, 000 290, 000 (81,000) 260, 000 220, 000 (44,000) $1,010,000 $886, 000 Total assets Li abilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term li abilities: Notes payable Stockholders' equity: $ 91,000 12,000 15,000 75,000 7,000 16,000 235, 000 305, 000 400, 000 133, 000 Common stock 400, 000 207, 000 Retained earnings $1,010,000 $886, 000 Total liabilities and stockholders' equity Additional Infermetion for 2021. Additional Information for 2021: 1. Purchase investment in bonds for $115,00O. 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 issuing a $70,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $30,000. 10 polnts 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.) 8 02:03:57 Skipped VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 eBook Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities: References Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities