1.Based on the following information, prepare the statement of cash flows using the direct method for Daddy Cool Company for the year ended December 31, 2025. Please show workings

Beginning balance accounts payable,$155,000

Collections from customers , 1870000

Paid employees' salaries,228000

Ending balance accounts payable,175000

Additional information provided by the company includes the following:

a. Equipment costing $406,000 was purchased in cash.

b. Equipment with a net book value of $20,000 was sold for $20,000.

c. During 2024, the company repaid $40,000 of short-term notes payable.

d. During 2024, the company borrowed $30,000 on a new long-term note payable. 5. The company issued $42,000 in Common Stock for cash during the year.

e. The company purchased $6,000 of Treasury Stock during the year.

f. All sales are on credit.

g. Ending balance merchandise inventory was $300,000

h. Cost of goods sold was $1,170,000

I. Beginning balance merchandise inventory was $250,000

j. Cash Balance on December 31, 2023 was $190,000