The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. pped bok VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales $2,456,000 Expensen: Cost of goods sold $1,450,000 Operating expenses 758,000 Depreciation expense 17,000 Loss on sale of land 7,000 Interest expense 10,000 Income tax expense 38,000 Total expenses 2,280,000 Net income $ 176,000 ht nces VIDEO PRONES, INC. Dalance Sheets December 31 2021 2020 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land AA $138,600 70,000 105,000 8,400 $ 60,800 50,000 125,000 4,200 95,000 200,000 0 220.000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $138,600 70,000 105,000 8,400 $ 60, 800 50,000 125,000 4,200 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 95,000 200,000 250,000 (57,000) $810,000 0 220,000 200,000 (40,000) $620,000 $ 57,000 5,000 14,000 $ 71,000 8,000 13,000 265,000 215,000 200,000 269,000 $810,000 200,000 113,000 $620,000 Additional Information for 2021: 1. Purchase Investment in bonds for $95,000 2. Sell land costing $20,000 for only $13,000, resulting in a $7,000 loss on sale of land. 3. Purchase $50,000 in equipment by Issuing a $50,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $20,000 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: 0 Net cash flows from investing activities Cash Flows from Financing Activities: 0 Net cash flows from financing activities Cash at the beginning of the period "ash at the end of the period ote: Noncash Activities