The income statement, balance sheets, and additional information for Video Phones, Inc. are provided $2,756,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses : Cost of goods sold $1,700, eee Operating expenses 88,888 Depreciation expense 22,000 Loss on sale of land 7,500 Interest expense 12,500 Income tax expense 43,000 Total expenses Net income 2,593,000 $ 163,000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 172,900 75,500 105,eoe 9 9,600 $102,700 55,800 130,900 4,800 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 100,000 205,000 260,000 (63,088) $ 865,000 3 23 230,000 205,000 (41,000) 5686,500 61,500 5,500 14,500 $ 76,000 9,000 13,500 275 , 220,000 250,000 258, see 5 865,000 250,000 118.800 $686,500 Additional Information for 2021: 1. Purchase investment in bonds for $100,000 2. Sell and costing $25,000 for only $17.500, resulting in a $7.500 loss on sale of land. 3. Purchase $55.000 in equipment by issuing a $55.000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $22,500 Answer is not complete. VIDEO PHONES, INC Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net income ls 163,000 Adjustments to reconcile net income to net cash flows from operating activities Depreciation expense 22,000 Loss (on sale of land) 7.500 0000 Increase in accounts receivable (20.500) 25,000 Decrease in inventory Increase in prepaid rent OOOO OOO (4.800) SIS Decrease in accounts payable (14,500) Decrease in interest payable Increase in income tax payable OO (3,500) 1,000 $ 175,200 Net cash flows from operating activities Cash Flows from investing Activities Purchase investment in bonds lo (100,000) 17.500 Proceeds from sale of land (82,500) Net cash flows from investing activities Cash Flows from Financing Activities Payment of cash dividends Os 22,500) Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period (22.500) 70 200 102,700 O s 172 900 Note: Noncash Activities