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 $3,586,000 Expenses: Cost of goods sold $2,400,000 Operating expenses 948,000 Depreciation expense 36,000 Loss on sale of land 8, 900 Interest expense 19,500 Income tax expense 57,000 Total expenses 3, 469, 400 Net income 116,600 S VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 257,740 90,900 105,000 14,160 $219, 420 69,000 144,000 7,080 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 Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 114,000 219,000 288,000 (79, 800) $1,009,000 0 258,000 219,000 (43, 800) $872,700 S 74,100 6,900 15,900 $ 90,000 11,800 14,900 303,000 234,000 390,000 219, 100 $1,009,000 390,000 132,000 $872,700