VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales $2,636,000 Expenses: Cost of goods sold $1,600,000 Operating expenses 788,000 Depreciation expense 20,000 Loss on sale of land 7,380 Interest expense 11,500 Income tax expense 41,000 Total expenses 2,467,800 Net income $ 168,280 t 3 nces VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $159, 180 73,300 105,000 9, 120 $ 85,940 53,000 128,000 4,568 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 98,000 203,000 256,080 (60,600) $843,000 226,000 203,000 (40.600) $659,900 $ 59,700 5,300 14,300 $ 74,000 8,600 13,300 218,000 271,000 230,000 262, 700 5843,000 230,000 116,000 $659,900 Additional Information for 2021: 1. Purchase Investment in bonds for $98,000. 2. Sell land costing $23,000 for only $15.700, resulting in a $7.300 loss on sale of land. 3. Purchase $53,000 in equipment by issuing a $53,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $21,500 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.) Help Cash Flows from Operating Activities 4 Adjustments to reconcile net income to net cash flows from operating activities 1.75 points Print References 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 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities