VIDEO PHONES, INCORPORATED
Income Statement
For the Year Ended December 31, 2024
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	7,300
Interest expense	11,500
Income tax expense	41,000
Total expenses		2,467,800
Net income		$ 168,200

VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$159,180	$85,940
Accounts receivable	73,300	53,000
Inventory	105,000	128,000
Prepaid rent	9,120	4,560
Long-term assets:
Investments	98,000	0
Land	203,000	226,000
Equipment	256,000	203,000
Accumulated depreciation	(60,600)	(40,600)
Total assets	$843,000	$659,900
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 59,700	$ 74,000
Interest payable	5,300	8,600
Income tax payable	14,300	13,300
Long-term liabilities:
Notes payable	271,000	218,000
Stockholders' equity:
Common stock	230,000	230,000
Retained earnings	262,700	116,000
Total liabilities and stockholders equity	$843,000	$659,900

Additional Information for 2024:

Purchased investment in bonds for $98,000.

Sold land for $15,700. The land originally was purchased for $23,000, resulting in a $7,300 loss being recorded at the time of the sale.

Purchased $53,000 in equipment by issuing a $53,000 long-term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid 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. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)

Cash Flows from Operating Activities
Adjustments to reconcile net income to net cash flows from operating activities.
Not cash from operating activities
Cash Flows from Investing Activities
Not Cash Flows from investing activities
Cash Flows from Financial Activities
Not Cash flows from financial activities
Cash at the Beginning of the Period
Cash at the End of the Period
Note: Noncash Activities