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

Net sales $3,336,000
Expenses:
Cost of goods sold $2,150,000
Operating expenses 898,000
Depreciation expense 31,000
Loss on sale of land 8,400
Interest expense 17,000
Income tax expense 52,000
Total expenses 3,156,400
Net income $ 179,600

VIDEO PHONES, INC.
Balance Sheet
December 31
2018 2017
Assets Current assets:
Cash $273,440 $177,520
Accounts receivable 85,400 64,000
Inventory 105,000 139,000
Prepaid rent 12,960 6,480
Long-term assets:
Investments 109,000 0
Land 214,000 248,000
Equipment 278,000 214,000
Accumulated depreciation (73,800) (42,800)
Total assets $1,004,000 $806,200
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $69,600 $85,000
Interest payable 6,400 10,800
Income tax payable 15,400 14,400
Long-term liabilities:
Notes payable 293,000 229,000
Stockholders' equity:
Common stock 340,000 340,000
Retained earnings 279,600 127,000
Total liabilities and
-stockholders’ equity $1,004,000 $806,200

Additional Information for 2018:
1. Purchase investment in bonds for $109,000.
2. Sell land costing $34,000 for only $25,600, resulting in an $8,400 loss on the sale of land.
3. Purchase $64,000 in equipment by issuing a $64,000 long-term note payable to the seller. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $27,000.

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.)