VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 260,880 89,800 105,000 13,920 $211,040 68,000 143,000 6,960 Asseta Current assetst Cash Accounts receivable Inventory Prepaid rent Long-term assets Investments Land Equipment Accumulated depreciation Total assets Liabilities and stockholders' Equity Current liabilities Lecounts payable Interest payable Income tax payable Long-term liabilities Notes payable Stockholders' equity Common stock Retained earnings Total liabilities and stockholdera equity 113,000 218,000 286,000 (78.600 $1,000,000 0 256,000 218,000 143.600) $859,400 $ 73,200 6,800 15,800 $ 89,000 11,600 14,800 233,000 301,000 380,000 231 200 $1,000,000 380,000 101000 5059,400 Additional Information for 2021: 1. Purchase investment in bonds for $113,000. 2. Sell and costing $38,000 for only $29.200, resulting in a $8,800 loss on sale of land. 3. Purchase $68.000 in equipment by Issuing a $68,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $29,000. Required: Prepare the statement of cash flows using the Indirect 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 Seved $ 129,200 VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of land) Decrease in inventory Increase in accounts receivable Increase in propaid rent Increase in income tax payable Decrease in interest payable Decrease in accounts payable 35,000 8.800 38.000 (21.800) (6,960) 1,000 (4.800) (15,800) $ 162,640 Net cash flows from operating activities Cash Flows from Investing Activities Purchase investment in bonds 0 Net cash flows from investing activities Cash Flows from Financing Activities Payment of cash dividends Net cash flows from financing activities Cash at the beginning of the period Catch a tha and the rain Decrease in inventory Increase in accounts receivable Increase in prepaid rent Increase in income tax payablo Decrease in interest payable Decrease in accounts payable 38,000 (21,800) (6,960) 1,000 (4,800) (15,800) $ 162,640 Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in bonds 0 Net cash flows from investing activities Cash Flows from Financing Activities: Payment of cash dividends Net cash flows from financing activities $ 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Purchase equipment issuing a note payable $ 68,000