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, 2018
Net sales		$	3,486,000
Expenses:
Cost of goods sold	$ 2,300,000
Operating expenses	928,000
Depreciation expense	34,000
Loss on sale of land	8,700
Interest expense	18,500
Income tax expense	55,000
Total expenses			3,344,200
Net income		$	141,800

VIDEO PHONES, INC. Balance Sheet December 31
	2018		2017
Assets
Current assets:
Cash	$	264,020	$	202,660
Accounts receivable		88,700		67,000
Inventory		105,000		142,000
Prepaid rent		13,680		6,840
Long-term assets:
Investments		112,000		0
Land		217,000		254,000
Equipment		284,000		217,000
Accumulated depreciation		(77,400)		(43,400)
Total assets	$	1,007,000	$	846,100
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	72,300	$	88,000
Interest payable		6,700		11,400
Income tax payable		15,700		14,700
Long-term liabilities:
Notes payable		299,000		232,000
Stockholders' equity:
Common stock		370,000		370,000
Retained earnings		243,300		130,000
Total liabilities and stockholders equity	$	1,007,000	$	846,100

Additional Information for 2018: 1. Purchase investment in bonds for $112,000. 2. Sell land costing $37,000 for only $28,300, resulting in a $8,700 loss on sale of land. 3. Purchase $67,000 in equipment by borrowing $67,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $28,500.

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, 2018 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