The 2025 income statement and comparative balance sheet of Majestic Mountains, Inc. follow: 

Additionally, Majestic Mountains, Inc. purchased land of $23,600 by financing it 100% with long-term notes payable during 2025. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and the accumulated depreciation of the disposed asset was $11,560. The plant acquisition was for cash. 

Requirements 

1. Prepare the 2025 statement of cash flows, formatting operating activities by the indirect method. 

2. How will what you learned in this problem help you evaluate an investment?

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Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense MAJESTIC MOUNTAINS, INC. Income Statement Year Ended December 31, 2025 Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue Interest Expense Total Other Income and (Expenses) Net Income Before Income Taxes Income Tax Expense Net Income $ 78,400 14,400 10,200 8,000 (21,900) $ 436,000 202,200 233,800 103,000 130,800 (13,900) 116,900 19,100 $ 97,800