2 4 points Print References Problem 11-4A (Algo) 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, Incorporated, are provided. Net sales Expenses: VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $1,800,000 828,000 24,000 7,700 13,500 45,000 $2,886,000 2,718,200 $ 167,800 Assets Current assets: Cash. Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 2023 $196,620 77,700 $119,460 57,000 105,000 10,080 132,000 5,040 102,000 0 207,000 234,000 264,000 207,000 (65,400) (41,400) $897,000 $713,100 Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity. Current liabilities: Accounts payable $ 63,300 Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Additional Information for 2024: $ 78,000 5,700 14,700 9,400 13,700 279,000 222,000 270,000 270,000 264,300 120,000 $897,000 $713,100 1. Purchased investment in bonds for $102,000. 2. Sold land for $19,300. The land originally was purchased for $27,000, resulting in a $7,700 loss being recorded at the time of the sale. 3. Purchased $57,000 in equipment by issuing a $57,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $23,500. 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.)