Question: The income statement balance sheets and additional information for Video

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

Additional Information for 2015:
1. Purchase investment in bonds for $115,000.
2. Sell land costing $40,000 for only $31,000, resulting in a $9,000 loss on sale of land.
3. Purchase $70,000 in equipment by borrowing $70,000 with a note payable due in three years. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $30,000.

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanyingnote.
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  • CreatedJuly 15, 2014
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