Required:
indirect
The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO PHONES, INC. Income StatementFor the Year Ended December 31, 2018Net sales $ 3,636,000Expenses:Cost of goods sold $ 2,450,000Operating expenses 958,000Depreciation expense 37,000Loss on sale of land 9,000Interest expense 20,000Income tax expense 58,000—Total expenses 3,532,000Net income $ 104,000 VIDEO PHONES, INC. Balance Sheet December 31 AssetsCurrent assets:CashAccounts receivableInventoryPrepaid rentLong-term assets:InvestmentsLandEquipmentAccumulated depreciation Total assets Liabilities and Stockholders' EquityCurrent liabilities:Accounts payableInterest payableIncome tax payableLong-term liabilities:Notes payableStockholders' equity:Common stockRetained earnings Total liabilities and stockholders’ equity 2013 2017$ 254,500 $ 227,30092,000 70,000105,000 145,00014,400 7,200115,000 0220,000 250,000290,000 220,000(31,000) (44,000)—$ 1,010,000 $ 335,000—$ 75,000 $ 91,0007,000 12,00015,000 15,000305,000 235,000400,000 400,000207,000 133,000$ 1,010,000 $ 335,000
