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, 2018 $ 2,756,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense 1,700,000 808,000 22,000 7,500 12,500 43,000 Total expenses 2,593,000 Net income $ 163,000 VIDEO PHONES, INC. Balance Sheet 2018 2017 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent $ 172,900 $ 102,700 75,500 55,000 05,000 130,000 4,800 9,600 Long-term assets: Investments Land Equipment 100,000 205,000 230,000 260,000 205,000 (63,000 41,000) Total assets $ 865,000 $686,500 Liabilities and Stockholders Equity Current liabilities: Accounts payable Interest payable Income tax payable $ 61,500 $ 76,000 9,000 14,500 3,500 5,500 Long-term liabilities: Notes payable 275,000 220,000 Common stock 250,000 250,000 Additional Information for 2018: 1. Purchase investment in bonds for S100,000 2. Sell land costing $25,000 for only S17,500, resulting in a $7,500 loss on sale of land. 3. Purchase 555,000 in equipment by borowing $55,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $22,500. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows an EO PHONES Statement of Cash Flows For the Year Ended r 31, 2018 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities Net cash flows from operating activites- Cash Flows from Investing Activities: Net cash flows from investing activites 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 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, 2018 $ 2,756,000 Net sales Expenses: Cost of goods sold 1,700,000 808,000 22.000 .500 12,500 43,000 Loss on sale of land Interest expense Income tax expense Total expenses 2,593,000 Net income $ 163.000 VIDEO PHONES, INC Balance Sheet 2018 2017 Assets Current assets: Cash $ 172.900 $ 102,700 5,500 55,000 05000 30,000 9,600 4,800 Prepaid rent Lang-term assets 100,000 205,000 230,000 260,000 205,000 3000 41,000) Land Accumulated depreciation Total assets $ 865,000 $ 686,500 Liabiliies and Stockholders Equity Current liabil es Accounts payable Interest payable $ 61,500 76,000 9,000 4,500 3,500 5,500 Income tax payable Long-term liabilites: Notes payable Stockholders equity Common stock 275,000 220,000 250,000 250,000 258,500 118,000 Total labilities and stockholders 865,000 $ 686,500