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

VIDEO PHONES, INCORPORATED

Income Statement

For the Year Ended December $31,2024$

Net sales $$2,576,000$

Expenses:

Cost of goods sold $$1,550,000$

Operating expenses $778,000$

Depreciation expense $19,000$

Loss on sale of land $7,200$

Interest expense $11,000$

Income tax expense $40,000$

Total expenses $2,405,200$

Net income $ $170,800$

VIDEO PHONES, INCORPORATED

Balance Sheets

December $31$

$20242023$

Assets

Current assets:

Cash $ $152,320$ $$77,560$

Accounts receivable $72,20052,000$

Inventory $105,000127,000$

Prepaid rent $8,8804,440$

Long$-$term assets:

Investments $97,0000$

Land $202,000224,000$

Equipment $254,000202,000$

Accumulated depreciation $(59,400)(40,400)$

Total assets $$832,000$ $$646,600$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $58,800$ $ $73,000$

Interest payable $5,2008,400$

Income tax payable $14,20013,200$

Long$-$term liabilities:

Notes payable $269,000217,000$

Stockholders' equity:

Common stock $220,000220,000$

Retained earnings $264,800115,000$

Total liabilities and stockholders$$ equity $$832,000$ $$646,600$

Additional Information for $2024$:

Purchased investment in bonds for $$97,000.$

Sold land for $$14,800.$ The land originally was purchased for $$22,000,$ resulting in a $$7,200$ loss being recorded at the time of the sale.

Purchased $$52,000$ in equipment by issuing a $$52,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$21,000.$

Required:

Prepare the statement of cash flows for Video Phones, Incorporated, using the direct 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.$)$