a. Photography reported net income of \(\$ 100,000\) for 2025 . Included in the income statement were depreciation expense of \(\$ 6,300\), patent amortization expense of \(\$ 4,000\), and a gain on disposal of plant assets of \(\$ 3,600\). PK's comparative balance sheets show the following balances.

Calculate net cash provided by operating activities for PK Photography.

b. Alex Company reported the following information for 2025.

Additional information:
1. Operating expenses include depreciation expense of \(\$ 40,000\).
2. Land was sold at its book value for cash.
3. Cash dividends of \(\$ 85,000\) were declared and paid in 2025 .
4. Equipment with a cost of \(\$ 166,000\) was purchased for cash. Equipment with a cost of \(\$ 51,000\) and a book value of \(\$ 36,000\) was sold for \(\$ 34,000\) cash.
5. Bonds of \(\$ 50,000\) were redeemed at their face value for cash.
6. Common stock ( \(\$ 1\) par) was issued at par for \(\$ 170,000\) cash.

Use this information to prepare a statement of cash flows using the indirect method.

Transcribed Image Text:

Accounts receivable Accounts payable 12/31/25 $21,000 9,200 12/31/24 $27,000 6,000