Problem 11-4A 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, Inc., are provided. VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense $3,586,000 $2,400,000 948, 000 36,000 8,900 19,500 57,000 ces Income tax expense Total expenses 3,469,400 $ 116,600 Net income VIDEO PHONES, INC. Balance Sheets Decenber 31 2021 2020 Assets Current assets: Cash 257,740 90,900 105,000 14,160 $219,420 69,000 144, 000 7,080 Accounts receivable Inventory Prepaid rent Long-tere assets: Investments Land Equipment Accumulated depreciation 114,000 219,000 288,000 (79, 800) 258,000 219,000 (43,800) VIDEO PHONES, INC. Balance Sheets Decenber 31 2021 2020 Assets Current assets: $ 257,740 90,900 105,000 14,160 $219,420 69,000 144,000 7,080 Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments 114,800 219,000 288,000 (79, 800) $1,009, e00 258,800 219,000 (43, 800) $872, 700 Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: $ 99, 000 11,800 14,900 74,100 6,900 15,900 303,000 234,000 Common stock 390,000 219, 100 $1,889, 000 390, eee 132,000 Retained earnings Total liabilities and stockholders' equity $872, 700 Additional Information for 2021: 1. Purchase investment in bonds for $114,000. 2. Sell land costing $39,000 for only $30,100, resulting in a $8,900 loss on sale of land. 3. Purchase $69,000 in equipment by issuing a $69,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $29,500. VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities 0. Cash at the beginning of the period Cash at the end of the period %24 Note Noncash Activities