The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided.$\backslash$table$[[,-1,,],[$Increase in accounts receivable,V$),(20,900)$vv$,],[$Decrease in inventory,$,29,000$vv$,],[$Increase in prepaid rent,$,(5,280)$vv$,],[$Decrease in accounts payable,$2,(14,900)$vv$,],[$Decrease in interest payable,$,(3,900)$vv$,],[$Increase in income tax payable,$,1,000$vv$,],[$Net cash flows from operating activities,,,$$,161,520],[$Cash Flows from Investing Activities:$],[$Purchase investment in bonds,$,(104,000)$vv$,],[$Proceeds from sale of land,$,21,100,],[$Net cash flows from investing activities,,,$(82,900)],[$Cash Flows from Financing Activities:$],[$Payment of cash dividends,$,$$$,(24,500)$vv$,],[$Net cash flows from financing activities,,,$(24,500)],[$Cash at the beginning of the period,,,$136,220$vv$],[$Cash at the end of the period,,,$$,136,220],[$Note: Noncash Activities,,,$]]$

VIDEO PHONES, INCORPORATED

Income Statement

For the Year Ended December $31,2024$

Net sales $$2,986,000$

Expenses:

Cost of goods sold $$1,900,000$

Operating expenses $848,000$

Depreciation expense $26,000$

Loss on sale of land $7,900$

Interest expense $14,500$

Income tax expense $47,000$

Total expenses $2,843,400$

Net income $ $142,600$

VIDEO PHONES, INCORPORATED

Balance Sheets

December $31$

$20242023$

Assets

Current assets:

Cash $$190,340$ $$136,220$

Accounts receivable $79,90059,000$

Inventory $105,000134,000$

Prepaid rent $10,5605,280$

Long$-$term assets:

Investments $104,0000$

Land $209,000238,000$

Equipment $268,000209,000$

Accumulated depreciation $(67,800)(41,800)$

Total assets $$899,000$ $$739,700$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $65,100$ $ $80,000$

Interest payable $5,9009,800$

Income tax payable $14,90013,900$

Long$-$term liabilities:

Notes payable $283,000224,000$

Stockholders' equity:

Common stock $290,000290,000$

Retained earnings $240,100122,000$

Total liabilities and stockholders$$ equity $$899,000$ $$739,700$

Additional Information for $2024$:

Purchased investment in bonds for $$104,000.$

Sold land for $$21,100.$ The land originally was purchased for $$29,000,$ resulting in a $$7,900$ loss being recorded at the time of the sale.

Purchased $$59,000$ in equipment by issuing a $$59,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$24,500.$

Required:

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. $($Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.$)$