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 $3,636,000 Expenses: Cost of goods $2,450,000 sold Operating 958,000 expenses Depreciation 37,000 expense Loss on sale of 9,000 land Interest expense 20,000 Income tax 58,000 expense Total expenses 3,532,000 Net income $ 104,000 2020 $227,800 70,000 145,000 7,200 0 VIDEO PHONES, INC. Balance Sheets December 31 2021 Assets Current assets: Cash $ 254,600 Accounts receivable 92,000 Inventory 105,000 Prepaid rent 14,400 Long-term assets: Investments 115,000 Land 220,000 Equipment 290,000 Accumulated depreciation (81,000) Total assets $1,010,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 75,000 Interest payable 7,000 Income tax payable 16,000 Long-term liabilities: Notes payable 305,000 Stockholders' equity: Common stock 400,000 Retained earnings 207,000 Total liabilities and stockholders' $1.010.000 equity 260,000 220,000 (44,000) $886,000 $ 91,000 12,000 15,000 235,000 400,000 133,000 $886,000 Additional Information for 2021: 1. Purchase investment in bonds for $115,000. 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. 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: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities