Problem 11-4A Prepare a statement of cash flows-Indirect method (LO11-2, 11-3, 11-4, 11-5) 4 The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. PO Reference VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales $3,536,800 Expenses : Cost of goods sold $2,350,000 Operating expenses 938,000 Depreciation 35,000 expense Loss on sale of Land 8,800 Interest expense 19,000 Income tax 56,000 expense Total expenses 3,486,880 Net income $ 129,200 VIDEO PHONES, INC. Balance Sheets December 31 2821 2820 Assets Current assets: Cash $ 260,850 $211,040 Accounts receivable 89,800 68,000 Inventory 105,888 143,800 Prepaid rent 13,920 6,960 Long-term assets: Investments 113,000 Land 218,000 256,000 Equipment 286,000 218,000 Accumulated depreciation (78,688) (43.600) Total assets $1,088,000 $859,400 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 73,280 $ 89,000 Interest payable 6,800 11,600 Income tax payable 15,800 14,880 Long-term liabilities: Notes payable 301,200 233,000 Stockholders' equity: Common stock 380,000 380,000 Retained earnings 231,288 131,000 Total liabilities and stockholders $1,688,000 $859,482 equity Additional Information for 2021: 1. Purchase investment in bonds for $113,000 2. Sellland costing $38,000 for only $29,200, resulting in a $8,800 loss on sale of land. 3. Purchase $68,000 in equipment by issuing a $68,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $29.000 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: 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 financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities