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 Expenses : $2,696,000 cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $1,650,000 798,000 21,000 7,400 12,000 42,000 2,530,400 s 165,600 Total expenses Net income VIDEO PHONES, INC. Balance Sheets December 31 2020 2021 Curzent assets: 94,320 54,000 $166,040 74,400 105.000 Cash 129,000 Che 31 h $166,040 74,400 105,000 9,360 94,320 S4,000 129,000 99,000 204,000 Land 228,000 204,000 258,0002 $854,000 $673,200 s 60,600 5, 400 $ 75,000 800 13,400 273,000 219,000 240,000 260,600 $854,000 673,200 2. Sell land costing $24,000 for only $16,600, resulting in a $7.400 loss on sale of land. 3. Purchase $54,000 in equipment by issuing a $54,000 long-term note payable to the seller. No cash is exchanged in the transaction. Prex 2 of 2 Next ent ng In an Prey Net cash flows from operating 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