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 $2,816,000 Expenses: Cost of goods sold $1,750,000 Operating expenses 818,000 Depreciation expense 23,000 Loss on sale of land 7,600 Interest expense 13,000 Income tax expense 44,000 Total expenses 2,655,600 Net income $ 160,400 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $179,760 76,600 105,000 9,840 $111,080 56,000 131,000 4,920 0 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 101,000 206,000 262,000 (64,200) $876,000 232,000 206,000 (41,200) $699,800 $ 62,400 5,600 14,600 $ 77,000 9,200 13,600 277,000 221,000 260,000 256,400 $876,000 260,000 119,000 $699,800 Additional Information for 2021: 1. Purchase investment in bonds for $101,000. 2. Sell land costing $26,000 for only $18,400, resulting in a $7,600 loss on sale of land. 3. Purchase $56,000 in equipment by issuing a $56,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $23,000. 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.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: in activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities