Problem 11-4A Prepare a statement of cash flows-indirect method (LO2, 3)

The income statement, balance sheet, and additional information for Video Phones, Inc., are provided.

VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2015
Net sales		$	3,636,000
Expenses:
Cost of goods sold	$ 2,450,000
Operating expenses	958,000
Depreciation expense	37,000
Loss on sale of land	9,000
Interest expense	20,000
Income tax expense	58,000
Total expenses			3,532,000
Net income		$	104,000

VIDEO PHONES, INC. Balance Sheet December 31
	2015		2014
Assets
Current assets:
Cash	$	254,600	$	227,800
Accounts receivable		92,000		70,000
Inventory		105,000		145,000
Prepaid rent		14,400		7,200
Long-term assets:
Investments		115,000		0
Land		220,000		260,000
Equipment		290,000		220,000
Accumulated depreciation		(81,000)		(44,000)
Total assets	$	1,010,000	$	886,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	75,000	$	91,000
Interest payable		7,000		12,000
Income tax payable		16,000		15,000
Long-term liabilities:
Notes payable		305,000		235,000
Stockholders' equity:
Common stock		400,000		400,000
Retained earnings		207,000		133,000
Total liabilities and stockholders equity	$	1,010,000	$	886,000