2 Problem 11-7A Calculate operating activities-direct method (L011-4, 11-5, 11-7) 3 points 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, 2021 Net sales $2,516,000 Expenses: Cost of goods sold $1,500,000 Operating expenses 768,000 Depreciation expense 18.000 Loss on sale of land 7.100 Interest expense 10.500 Income tax expense 39,000 Total expenses 2, 342,500 Net income $ 173,400 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments $145, 460 71.100 105,000 8,64 96,000 $ 69,180 51,00 126,000 4,320 ME GO HA