The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales $2, 456, 000 Expenses : Cost of goods sold $1, 450, 090 Operating expenses 758,000 Depreciation expense 17 , 090 Loss on sale of land 7, 000 Interest expense 10, 000 Income tax expense 38, 090 Total expenses 2, 280, 000 Net income $ 176,060 VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 2023 Assets Current assets: Cash $138, 600 $60, 800 Accounts receivable 70, 000 50, 000 Inventory 105, 000 125, 000 Prepaid rent 8, 406 4, 200 Long-term assets: Investments 95, 000 Land 200, 000 220, 900 Equipment 250, 000 200, 000 Accumulated depreciation (57, 000) (40, 000) Total assets $810, 000 $620,000 Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 57, 000 $ 71, 000 Interest payable 5, 000 8,900 Income tax payable 14,006 13, 900 Long-term liabilities: Notes payable 265, 000 215, 000 Stockholders' equity: Common stock 200, 000 200, 000 Retained earnings 269, 006 113, 000 Total liabilities and stockholders' equity $810, 000 $620,900Additional Information for 2024: 1. Purchased investment in bonds for $85,000. 2. Sold land for $13,000. The land originally was purchased for $20,000, resulting in a $7000 loss being recorded at the time of the sale. 3. Purchased $50.000 in equipment by issuing a $50,000 long-term note payable to the seller Mo cash was exchanged in the transaction. 4 Declared and paid a cash dividend of $20,000. 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.) Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities: Met cash flows from operating activities Cash Flows from Investing Activities: Met cash flows from investing activities Cash Flows from Financing Activities: Met cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Mote: Noncash Activities