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The income statement, balance sheets, and additional information for Video Phones, Inc., are provided.

VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2018
Net sales		$	3,586,000
Expenses:
Cost of goods sold	$ 2,400,000
Operating expenses	948,000
Depreciation expense	36,000
Loss on sale of land	8,900
Interest expense	19,500
Income tax expense	57,000
Total expenses			3,469,400
Net income		$	116,600

VIDEO PHONES, INC. Balance Sheet December 31
	2018		2017
Assets
Current assets:
Cash	$	257,740	$	219,420
Accounts receivable		90,900		69,000
Inventory		105,000		144,000
Prepaid rent		14,160		7,080
Long-term assets:
Investments		114,000		0
Land		219,000		258,000
Equipment		288,000		219,000
Accumulated depreciation		(79,800)		(43,800)
Total assets	$	1,009,000	$	872,700
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	74,100	$	90,000
Interest payable		6,900		11,800
Income tax payable		15,900		14,900
Long-term liabilities:
Notes payable		303,000		234,000
Stockholders' equity:
Common stock		390,000		390,000
Retained earnings		219,100		132,000
Total liabilities and stockholders equity	$	1,009,000	$	872,700

Additional Information for 2018: 1. Purchase investment in bonds for $114,000. 2. Sell land costing $39,000 for only $30,100, resulting in a $8,900 loss on sale of land. 3. Purchase $69,000 in equipment by borrowing $69,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $29,500.

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.)

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