The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided.

VIDEO PHONES, INCORPORATED

Income Statement

For the Year Ended December $31,2024$

Net sales $$2,816,000$

Expenses:

Cost of goods sold $$1,750,000$

Operating expenses $818,000$

Depreciation expense $23,000$

Loss on sale of land $7,600$

Interest expense $13,000$

Income tax expense $44,000$

Total expenses $2,655,600$

Net income $ $160,400$

VIDEO PHONES, INCORPORATED

Balance Sheets

December $31$

$20242023$

Assets

Current assets:

Cash $$179,760$ $$111,080$

Accounts receivable $76,60056,000$

Inventory $105,000131,000$

Prepaid rent $9,8404,920$

Long$-$term assets:

Investments $101,0000$

Land $206,000232,000$

Equipment $262,000206,000$

Accumulated depreciation $(64,200)(41,200)$

Total assets $$876,000$ $$699,800$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $62,400$ $ $77,000$

Interest payable $5,6009,200$

Income tax payable $14,60013,600$

Long$-$term liabilities:

Notes payable $277,000221,000$

Stockholders' equity:

Common stock $260,000260,000$

Retained earnings $256,400119,000$

Total liabilities and stockholders$$ equity $$876,000$ $$699,800$

Additional Information for $2024$:

Purchased investment in bonds for $$101,000.$

Sold land for $$18,400.$ The land originally was purchased for $$26,000,$ resulting in a $$7,600$ loss being recorded at the time of the sale.

Purchased $$56,000$ in equipment by issuing a $$56,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$23,000.$

$$ 

 

Required:

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. $($Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.$)$