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The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. Additional Information for 2021: 1. Purchase investment in bonds for $110,000.
The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. Additional Information for 2021: 1. Purchase investment in bonds for $110,000. 2. Sell land costing $35,000 for only $26,500, resulting in a $8,500 loss on sale of land. 3. Purchase $65,000 in equipment by issuing a $65,000 long-term note payable to the seller, No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $27,500. 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.) \begin{tabular}{l} VIDEO PHONES, INC. \\ \begin{tabular}{|l|l|l|} \hline Statement of Cash Flows \\ \hline Cash Flows from Operating Activities: & For the Year Ended Docember 31,2021 \\ \hline Adjustments to reconcile net income to net cash flows from operating activities: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & \\ \hline & \\ \hline \end{tabular} \\ \hline \end{tabular}
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