mation for Video Phones, Required: Prepare the operating activities section of the statement of using the indirect method. P11-4A The income statement, balance sheets, and additional information for Video Pb Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) Inc., are provided VIDEO PHONES, INC. Income Statement For the year ended December 31, 2021 $3,636,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,450,000 958,000 37,000 9,000 20,000 58.000 3,532,000 $ 104,000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets $ 254,600 92,000 105,000 14,400 $227,800 70,000 145,000 7,200 Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets 115,000 220,000 290,000 (81,000) $1,010,000 260,000 220,000 (44,000 $886,000 (continued) CHAPTER 11 Statement of Cash Flows VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 cluded) $ 75,000 7,000 16,000 $ 91,000 12,000 15,000 235,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable 305,000 400,000 207,000 $1,010,000 400,000 133.000 $886,000 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Additional Information for 2021: 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 issuing a $70,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $30,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying