Problem 11-7A Calculate operating activities--direct method (LO11-4, 11-5, 11-7) 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 $2,456,000 Expenses Cost of goods sold $1,450,000 Operating expenses 758,000 Depreciation expense 17,000 Loss on sale of land 7,000 Interest expense 10,000 Income tax expense 38,000 Total expenses 2,280,000 Net income $ 176,000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $138,600 70,000 105,000 8,400 $ 60,800 50,000 125,000 4,200 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 95,000 200,000 250,000 (57.000) $810,000 0 220,000 200.000 (40.000) $620,000 $ 57,000 5,000 $ 71,000 8.000