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 $2,756,000 Net sales Expenses Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $1,700,000 808,000 22,000 7,500 12,500 43,000 Total expenses 2,593,000 Net income 163,000 VIDEO PHONES, INC Balance Sheet December 31 2018 2017 Assets Current assets Cash Accounts receivable Inventory Prepaid rent 172,900 102,700 55,000 130,000 4,800 75,500 105,000 9,600 Long-term assets Investments Land Equipment Accumulated depreciation 100,000 205,000 260,000 (63,000) 0 230,000 205,000 (41,000) Total assets $ 865,000 686,500 VIDEO PHONES, INC Balance Sheet December 31 2018 2017 Assets Current assets: Cash S 172,900 $ 75,500 105,000 102,700 55,000 130,000 4,800 Inventory Prepaid rent 9,600 Long-term assets: Investments Land 100,000 205,000 260,000 (63,000) 230,000 205,000 (41,000) Accumulated depreciation Total assets 865,000 686,500 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable 61.500 5,500 14,500 76.000 9,000 13.500 Income tax payable Long-term liabilities: Notes payable Stockholders' equity Common stock 275,000 220,000 250,000 258,500 250.000 118,000 Retained earnings Total liabilities and stockholders equity S 865,000$686,500 Additional Information for 2018: 1. Purchase investment in bonds for $100,000 2. Sell land costing $25,000 for only $17,500, resulting in a $7,500 loss on sale of land 3. Purchase $55,000 in equipment by borrowing $55,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $22,500. 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.) 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