VIDEO PHONES, INC Balance Sheet December 31 2018 2017 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent $ 179,760 111,080 56,000 131,000 4,920 76,600 105,000 9,840 Long-term assets: Investments Land Equipment Accumulated depreciation 101,000 206,000 262,000 (64,200) 0 232,000 206,000 (41,200) Total assets $ 876,000 $ 699,800 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable 77,000 9,200 13,600 62,400 $ 5,600 Income tax payable Long-term liabilities Notes payable Stockholders' equity: Common stock 14,600 277,000 260,000 221,000 260,000 119,000 Retained earnings 256,400 Total liabilities and stockholders' equity $ 876,000 $ 699,800 Additional Information for 2018: 1. Purchase investment in bonds for $101,000 2. Sell land costing $26,000 for only $18,400, resulting in a $7,600 loss on sale of land 3. Purchase $56,000 in equipment by borrowing $56,000 with a note payable due in three years. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $23,000 For the Year Ended December 31, 2018 Cash Flows from Operating Activities: Net income $160,400 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities $160,400 Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities 0 he Income statment, balance sheets, and additinal information for video Phones, Inc., are provided VIDEO PHONES, INC Income Statement For the Year Ended December 31, 2018 $ 2,816,000 Net sales Expenses Cost of goods sold Operatingexpenses Depreciation expense Loss on sale of land Interest expense Income tax expense $1,750,000 818,000 23,000 7,600 13,000 44,000 Total expenses 2,655,600 Net income 160,400