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 Expenses: $3,136,000 $ 2,050,000 878,000 29,000 8,200 16,000 50,000 Cost of goods sold Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses 3,031,200 Net income 104,800 VIDEO PHONES, INC Balance Sheet December 31 2018 2017 Assets Current assets Cash Accounts receivable Inventory Prepaid rent $179,720 $ 160,760 62,000 137,000 6,240 83,200 105,000 12,480 Long-term assets: Investments Land Equipment Accumulated depreciation 107,000 212,000 274,000 (71,400) 244,000 212,000 (42,400) Total assets $902,000 $ 779,600 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable 67,800 $ 83,000 10,400 14,200 6,200 15,200 289,000 320,000 Long-term liabilities Notes payable 227,000 Stockholders' equity: Common stock Retained earnings 320,000 125,000 203,800 Total liabilities and stockholders' equity $902,000 $ 779,600 Additional Information for 2018: 1. Purchase investment in bonds for $107,000. 2. Sell land costing $32,000 for only $23,800, resulting in a $8,200 loss on sale of land. 3. Purchase $62,000 in equipment by borrowing $62,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $26,000. statement of cash Hows 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