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 $$3,086,000$

Expenses:

Cost of goods sold $$2,000,000$

Operating expenses $868,000$

Depreciation expense $28,000$

Loss on sale of land $8,100$

Interest expense $15,500$

Income tax expense $49,000$

Total expenses $2,968,600$

Net income $ $117,400$

VIDEO PHONES, INCORPORATED

Balance Sheets

December $31$

$20242023$

Assets

Current assets:

Cash $$182,860$ $$152,380$

Accounts receivable $82,10061,000$

Inventory $105,000136,000$

Prepaid rent $12,2406,120$

Long$-$term assets:

Investments $106,0000$

Land $211,000242,000$

Equipment $272,000211,000$

Accumulated depreciation $(70,200)(42,200)$

Total assets $$901,000$ $$766,300$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $66,900$ $ $82,000$

Interest payable $6,10010,200$

Income tax payable $15,10014,100$

Long$-$term liabilities:

Notes payable $287,000226,000$

Stockholders' equity:

Common stock $310,000310,000$

Retained earnings $215,900124,000$

Total liabilities and stockholders$$ equity $$901,000$ $$766,300$

Additional Information for $2024$:

Purchased investment in bonds for $$106,000.$

Sold land for $$22,900.$ The land originally was purchased for $$31,000,$ resulting in a $$8,100$ loss being recorded at the time of the sale.

Purchased $$61,000$ in equipment by issuing a $$61,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$25,500.$

 

 

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.$)$