Problem 11-7A Calculate operating activities—direct method (LO11-4, 11-5, 11-7) 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, 2021 Net sales $ 2,886,000 Expenses: Cost of goods sold $ 1,800,000 Operating expenses 828,000 Depreciation expense 24,000 Loss on sale of land 7,700 Interest expense 13,500 Income tax expense 45,000 Total expenses 2,718,200 Net income $ 167,800 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash $ 196,620 $ 119,460 Accounts receivable 77,700 57,000 Inventory 105,000 132,000 Prepaid rent 10,080 5,040 Long-term assets: Investments 102,000 0 Land 207,000 234,000 Equipment 264,000 207,000 Accumulated depreciation (65,400 ) (41,400 ) Total assets $ 897,000 $ 713,100 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 63,300 $ 78,000 Interest payable 5,700 9,400 Income tax payable 14,700 13,700 Long-term liabilities: Notes payable 279,000 222,000 Stockholders' equity: Common stock 270,000 270,000 Retained earnings 264,300 120,000 Total liabilities and stockholders’ equity $ 897,000 $ 713,100 Additional Information for 2021: Purchase investment in bonds for $102,000. Sell land costing $27,000 for only $19,300, resulting in a $7,700 loss on sale of land. Purchase $57,000 in equipment by issuing a $57,000 long-term note p