Problem 11-4A Prepare a statement of cash flows-indirect method (L011-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. 2.49/3 points awarded Scored VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales $ 2,936,000 Expenses: Cost of goods sold $1,850,000 Operating expenses 838,000 Depreciation expense 25,000 Loss on sale of land 7,800 Interest expense 14,000 Income tax expense 46,000 Total expenses 2,780,800 Net income $ 155,200 eBook Print References VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $193,480 78,800 105,000 10,320 $ 127,840 58,000 133,000 5,160 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 103,000 208,000 266,000 (66,600) $898,000 236,000 208,000 (41,600) $726, 400 $ 64,200 $ 79,000 $ 64,200 5,800 14,800 $ 79,000 9,600 13,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 281,000 223,000 2.49/3 points awarded 280,000 252,200 $898,000 280,000 121,000 $726,400 Scored Additional Information for 2021: eBook Print 1. Purchase investment in bonds for $103,000. 2. Sell land costing $28,000 for only $20,200, resulting in a $7,800 loss on sale of land. 3. Purchase $58,000 in equipment by issuing a $58,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $24,000. References Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of land) Increase in accounts receivable $ 155,200 25,000 7,800 (208,000) Increase in nranaid rant 15 1801 Vasil I IUWS HUILT UPel alliy ALLVILICO. $ 155,200 Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of land) Increase in accounts receivable Increase in prepaid rent Decrease in inventory 2.49/3 points awarded 25,000 7,800 (208,000) (5,160) 280,000 X (14,800) (3,800) 1,000 Scored Decrease in accounts payable Decrease in interest payable Increase in income tax payable eBook Print References $ 237,240 Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in bonds Proceeds from sale of land (103,000) 20,200 (82,800) Net cash flows from investing activities Cash Flows from Financing Activities: Payment of cash dividends $ (24,000) (24,000) Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period Moto.Monesch Activities Decrease in inventory Decrease in accounts payable Decrease in interest payable Increase in income tax payable 280,000 (14,800) (3,800) 1,000 2.49/3 points awarded $ 237,240 Scored Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in bonds Proceeds from sale of land (103,000) 20,200 eBook Print References (82,800) Net cash flows from investing activities Cash Flows from Financing Activities: Payment of cash dividends $ (24,000) (24,000) Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Purchase equipment issuing a note payable *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 0 Exercise 12-2A Prepare vertical analysis (L012-1) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. points Required: Prepare a vertical analysis of the data for 2022 and 2021. (Round your percentage answers to 1 decimal place.) eBook Hint Print References 2021 % FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 2022 Amount % $ 18,000,000 100.00 $ 13,500,000 4,500,000 1,386,000 810,000 54,000 1,296,000 954,000 288,000 666,000 $ Amount 14,700,000 6,526,800 8,173,200 1,014,300 837,900 Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax Income tax expense Net income 235,200 6,085,800 1,778,700 4,307,100