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Problem 11-4A Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO THONES, INC Income Statement For the Year Ended December 31, 2021 Net sales 52,696,000 Expenses cost of goods sold $1,650,000 Operating expenses 798.000 Depreciation expense 21,000 Loos on sale at land 7.400 Interest expense 12.000 Income tax expense 42.000 Total expenses 2,530,400 Net Income $ 165,600 2021 2020 $94,320 54,000 129.000 VIDEO PHONES, INC. Balance sheets December 31 Assets Current assets Cash Recounts receivable Inventory Prepaid rent Long-term assets Investments Land quipment Accumulated depreciation Total asseto Liabilities and stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable Long-term liabilities Notes payable Stockholders' equity Connon stock Retained earning Total liabilities and stockholders' equity 5166,040 74.400 105,000 9,360 99,000 204,000 258,000 61,000) S05,000 0 220,000 204,000 (40,000) 367). 200 $ 60,600 5,400 16,400 273,000 240,000 260, 600 3854.000 $75,000 3.000 13,400 219,000 240,000 117,000 3673,200 Additional Information for 2021: 1. Purchase investment in bonds for $99,000 2. Sell land costing $24,000 for only $16,600, resulting in a $7400 loss on sale of land. 3. Purchase $54,000 in equipment by Issuing a $54,000 long-term note payable to the seller. No cash is exchangId in the transaction. 4. Declare and pay a cash dividend of $22,000 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 For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities Loss (on sale of land) Net cash flows from operating activities Cash Flows from Investing Activities $ 0 Net cash flows from investing activities Cash Flows from Financing Activities: 0 Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activos $ 0

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