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 $$2,936,000$

Expenses:

Cost of goods sold $$1,850,000$

Operating expenses $838,000$

Depreciation expense $25,000$

Loss on sale of land $7,800$

Interest expense $14,000$

Income tax expense $46,000$

Total expenses $2,780,800$

Net income $ $155,200$

VIDEO PHONES, INCORPORATED

Balance Sheets

December $31$

$20242023$

Assets

Current assets:

Cash $$193,480$ $$127,840$

Accounts receivable $78,80058,000$

Inventory $105,000133,000$

Prepaid rent $10,3205,160$

Long$-$term assets:

Investments $103,0000$

Land $208,000236,000$

Equipment $266,000208,000$

Accumulated depreciation $(66,600)(41,600)$

Total assets $$898,000$ $$726,400$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $64,200$ $ $79,000$

Interest payable $5,8009,600$

Income tax payable $14,80013,800$

Long$-$term liabilities:

Notes payable $281,000223,000$

Stockholders' equity:

Common stock $280,000280,000$

Retained earnings $252,200121,000$

Total liabilities and stockholders$$ equity $$898,000$ $$726,400$

Additional Information for $2024$:

Purchased investment in bonds for $$103,000.$

Sold land for $$20,200.$ The land originally was purchased for $$28,000,$ resulting in a $$7,800$ loss being recorded at the time of the sale.

Purchased $$58,000$ in equipment by issuing a $$58,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$24,000.$

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.$)$