VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2018 Net sales $ 3,536,000 Expenses: $ Cost of goods sold 2,350,000 Operating expenses 938,000 Depreciation expense 35,000 Loss on sale of land 8,800 Interest expense 19,000 Income tax expense 56,000 Total expenses 3,406,800 Net income $ 129,200 VIDEO PHONES, INC. Balance Sheet December 31 2018 2017 Assets Current assets: Cash $ 260,880 $ 211,040 Accounts receivable 89,800 68.000 Inventory 105,000 143,000 Prepaid rent 13,920 6,960 Long-term assets: Investments 113,000 0 Land 218,000 256,000 Equipment 286,000 218,000 Accumulated depreciation (78,600) (43,600) Total assets $ 1,000,000 $ 859,400 $ 73,200 $ 89,000 6,800 11,600 15,800 14,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 301.000 233,000 380,000 231,200 380.000 131.000 Total liabilities and stockholders' equity $ 1,008,000$ 859,400 Additional Information for 2018: 1. Purchase investment in bonds for $113,000. 2. Sell land 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.)