This problem continues the Canyon Canoe Company situation from Chapter F:15. Canyon Canoe Company’s comparative balance sheet is shown below. 2025 amounts are assumed, but include several transactions from prior chapters.

Additional data follow:
1. The income statement for 2025 included the following items:
a. Net income, $417,000.
b. Depreciation expense for the year, $34,330.
c. Amortization on the bonds payable, $254.
2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash except the land, which was acquired by issuing preferred stock.
3. The company issued bonds payable with a face value of $210,000, receiving cash of $208,476.
4. The company distributed 4,000 shares of common stock in a stock dividend when the market value was $4.50 per share. All other dividends were paid in cash.
5. The common stock, except for the stock dividend, was issued for cash.
6. The cash receipt from the notes payable in 2025 is considered a financing activity because it does not relate to operations.

Requirement
Prepare the statement of cash flows for the year ended December 31, 2025, using the indirect method.

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Current Assets: Cash CANYON CANOE COMPANY Comparative Balance Sheet December 31, 2025 and 2024 2025 Short-term Investments, net Accounts Receivable, net Merchandise Inventory Office Supplies Prepaid Rent Property, Plant, and Equipment: Land Building Canoes Office Furniture and Equipment Accumulated Depreciation-PP&E Total Assets Current Liabilities: Accounts Payable Utilities Payable Telephone Payable Wages Payable Notes Payable Interest Payable Unearned Revenue Assets Long-term Liabilities: Notes Payable Total Liabilities Mortgage Payable Bonds Payable Discount on Bonds Payable Paid-In Capital: Liabilities $ 523,693 23,840 2,422 355 60 0 155,000 610,000 12,000 150,000 (35,180) $ 1,442,190 Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Paid-In Capital in Excess of Par-Common Retained Earnings 5,195 745 700 4,250 15,000 350 500 7,200 405,000 210,000 Preferred Stock 60,000 Paid-In Capital in Excess of Par-Preferred 10,000 Common Stock 186,000 150,000 (1,270) 647,670 388,520 794,520 $ 1,442,190 2024 $ 12,125 0 7,600 0 165 2,000 85,000 35,000 12,000 0 (850) $ 153,040 $ 3,050 295 325 1,250 0 50 350 7,200 0 0 0 12,520 0 0 136,000 0 4,520 140,520 $ 153,040