Problem 11-4A (Algo) Prepare a statement of cash flowsindirect method (LO11-2, 11-3, 11-4, 11-5)

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		$3,386,000
Expenses:
Cost of goods sold	$2,200,000
Operating expenses	908,000
Depreciation expense	32,000
Loss on sale of land	8,500
Interest expense	17,500
Income tax expense	53,000
Total expenses		3,219,000
Net income		$ 167,000

VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$270,300	$185,900
Accounts receivable	86,500	65,000
Inventory	105,000	140,000
Prepaid rent	13,200	6,600
Long-term assets:
Investments	110,000	0
Land	215,000	250,000
Equipment	280,000	215,000
Accumulated depreciation	(75,000)	(43,000)
Total assets	$1,005,000	$819,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 70,500	$ 86,000
Interest payable	6,500	11,000
Income tax payable	15,500	14,500
Long-term liabilities:
Notes payable	295,000	230,000
Stockholders' equity:
Common stock	350,000	350,000
Retained earnings	267,500	128,000
Total liabilities and stockholders equity	$1,005,000	$819,500

Additional Information for 2024:

Purchased investment in bonds for $110,000.

Sold land for $26,500. The land originally was purchased for $35,000, resulting in a $8,500 loss being recorded at the time of the sale.

Purchased $65,000 in equipment by issuing a $65,000 long-term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $27,500.