Additlonal Informatlon for 2021:1. Purchase Investment In bonds for $112,000.2 Sell land costing $37,000 for only $28,300, resulting in a $8,700 loss on sale of land.3. Purchase $67,000 in equipment by Issulng a $67,000 long-term note payable to the seller. No cash Is exchanged In the transaction.4. Declare and pay a cash dividend of $28,500.Requlred:Prepare the statement of cash flows for Video Phones, Inc., using the direct method. DIsclose any noncash transactions In anaccompanying note. (List cash outflows and any decrease In cash as negative amounts.)VIDEO PHONES, INC.Statement of Cash FlowsFor the Year Ended December 31, 2021Cash Flows from Operating Activities:Net income141,80034,0008,700(21,700)Depreciation expenseLoss (on sale of land)Increase in accounts receivableDecrease in inventory37,000Increase in prepaid rent(6,840)(15,700)Decrease in accounts payableNet cash flows from operating activities177 260Cash Flows from Investing Activities:Purchase investment in bonds(112,000)28,300Gain (on sale of land)Net cash flows from investing activities(83.700)Cash Flows from Financing Activities:Payment of cash dividends(28,500)Net cash flows from financing activities(28,500)Net increase in cash61.360Cash at the beginning of the period202,660Cash at the end of the period264.020Note: Noncash ActivitiesPurchase equipment issuing a note payable67,000 The Income statement, balance sheets, and additional Information for Video Phones, Inc., are provided.VIDEO PHONES, INC.Income StatementFor the Year Ended December 31, 2921Net sales$3,486,000Expenses:Cost of goods soldOperating expensesDepreciation expenseLoss on sale of landInterest expenseIncome tax expenseTotal expenses$2,300,000928,00034,0008,70018,50055,0003,344,200$ 141,800Net incomeVIDEO PHONES, INC.Balance SheetsDecember 3120212020ssetsCurrent assets:CashAccounts receivable$ 264,020InventoryPrepaid rentLong-term assets:Investments88,700105,00013,680$202,66067,000142,0006,840LandEquipmentAccumulated depreciation112,000217,000284,000(77,400)254,000217,000(43,400)$846,100Total assets$1,007,000Liabilities and Stockholders' EquityCurrent liabilities:Accounts payableInterest payableIncome tax payableLong -term liabilities:Notes payableStockholders' equity:Common stockRetained earnings72,3006,700$ 88,00011,40014,70015,700299,000232,000370,000243,300$1,007,000370,000130,000Total liabilities and stockholders' equity$846,100Additional Information for 2021:1. Purchase Investment In bonds for $112,000.2 Sell land costing $37,000 for only $28.300, resuiting In a $8.700 loss on sale of land.3. Purchase $67,000 In equipment by Isulng a $67,000 long-term note payable to the seller. No cash is exchanged In the transaction.4. Declare and pay a cash dividend of $28,500.

Name: Additlonal Informatlon for 2021:1. Purchase Investment In bonds for $
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Description: Additlonal Informatlon for 2021:1. Purchase Investment In bonds for $112,000.2 Sell land costing $37,000 for only $28,300, resulting in a $8,700 loss on sale of land.3. Purchase $67,000 in equipment by Issulng a $67,000 long-term note payable to the

Business

Accounting

Required: Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactions In an accompanying note. (LIst cash outflows and any decrease In cash as negative amounts.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net income 24 141,800 Depreciation expense 34,000 Loss (on sale of land) 8,700 Increase in accounts receivable (21,700) 37,000 Decrease in inventory Increase in prepaid rent (6,840) Decrease in accounts payable (15,700) Net cash flows from operating activities 177 260 Cash Flows from Investing Activities: (112,000) 28,300 Purchase investment in bonds Gain (on sale of land) Net cash flows from investing activities (83.700) Cash Flows from Financing Activities: Payment of cash dividends (28,500) Net cash flows from financing activities (28,500) Net increase in cash Cash at the beginning of the period 61,360 202,660 Cash at the end of the period 264,020 Note: Noncash Activities Purchase equipment issuing a note payable 67,000

Required: Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactions In an accompanying note. (LIst cash outflows and any decrease In cash as negative amounts.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net income 24 141,800 Depreciation expense 34,000 Loss (on sale of land) 8,700 Increase in accounts receivable (21,700) 37,000 Decrease in inventory Increase in prepaid rent (6,840) Decrease in accounts payable (15,700) Net cash flows from operating activities 177 260 Cash Flows from Investing Activities: (112,000) 28,300 Purchase investment in bonds Gain (on sale of land) Net cash flows from investing activities (83.700) Cash Flows from Financing Activities: Payment of cash dividends (28,500) Net cash flows from financing activities (28,500) Net increase in cash Cash at the beginning of the period 61,360 202,660 Cash at the end of the period 264,020 Note: Noncash Activities Purchase equipment issuing a note payable 67,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare a statement of cash flows (indirect method). Ignore tax effects.
i did most part, not sure if its correct. how do i find the cash at the begining of the year? i got $ -5500 as net decraese in cash
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Subject: acounting