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ints Book The income statement, balance sheets, and additional information for Video Phones, Inc. are provided. VIDEO PHONES, INC. Income Statement For the Year Ended

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ints Book 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, 2021 Net sales $3,336,000 Expenses: Cost of goods sold $2,150,000 Operating expenses 898,600 Depreciation expense 31,000 Loss on sale of land 8,480 Interest expense 17,000 Income tax expense 52,800 Total expenses 3, 156,400 Net income $ 179,600 Print eference VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash $ 273,440 $177,520 Accounts receivable 85,400 64,000 Inventory 105,000 139, 880 Prepaid rent 12,960 6,480 Long-term assets: Investments 109, eee Land 214,000 248,000 Equipment 278,000 214,888 Accumulated depreciation (73,800) (42,800) Total assets $1,884,000 $806,200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 69,688 $ 85,000 Interest payable 6, 4ee 10,880 Income tax payable 15,488 14,400 Long-term liabilities: Notes payable 293, eee 229,000 Stockholders' equity: Common stock 340, eee 340,000 Retained earnings 279,600 127,080 Total liabilities and stockholders' $1,004,000 $886,200 equity Additional Information for 2020: 1. Purchase investment in bonds for $109,000 2. Sel and costing $34,000 for only $25,600. resulting in a $8,400 loss on sale of land. 3. Purchase $64,000 in equipment by issuing a $64.000 long-term note payable to the selec No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $27,000 Additional Information for 2021: 1. Purchase investment in bonds for $109,000. 2. Sell land costing $34,000 for only $25,600, resulting in a $8,400 loss on sale of land. 3. Purchase $64,000 in equipment by issuing a $64,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $27,000. Required: Prepare the statement of cash flows for Video Phones, Inc., using the direct 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 Yoar Ended December 31, 2021 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

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