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		$2,516,000
Expenses:
Cost of goods sold	$1,500,000
Operating expenses	768,000
Depreciation expense	18,000
Loss on sale of land	7,100
Interest expense	10,500
Income tax expense	39,000
Total expenses		2,342,600
Net income		$ 173,400

VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$ 145,460	$69,180
Accounts receivable	71,100	51,000
Inventory	105,000	126,000
Prepaid rent	8,640	4,320
Long-term assets:
Investments	96,000	0
Land	201,000	222,000
Equipment	252,000	201,000
Accumulated depreciation	(58,200)	(40,200)
Total assets	$821,000	$633,300
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 57,900	$ 72,000
Interest payable	5,100	8,200
Income tax payable	14,100	13,100
Long-term liabilities:
Notes payable	267,000	216,000
Stockholders' equity:
Common stock	210,000	210,000
Retained earnings	266,900	114,000
Total liabilities and stockholders equity	$821,000	$633,300

Additional Information for 2024:

Purchased investment in bonds for $96,000.

Sold land for $13,900. The land originally was purchased for $21,000, resulting in a $7,100 loss being recorded at the time of the sale.

Purchased $51,000 in equipment by issuing a $51,000 long-term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $20,500.

Required:

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