Blue Company had available at the end of $2025$ the following information.

Blue Company

Comparative Balance Sheets As of December $31,2025$ and $2024$

$20252024$

Cash $$9,950$ $$3,990$

Accounts receivable $20,50012,970$

Short$-$term investments $21,81029,760$

Inventory $41,59034,800$

Prepaid rent $3,02012,090$

Prepaid insurance $2,07090$

Supplies $99075$

Land $125,490174,070$

Buildings $346,660346,660$

Accumulated depreciation$-$buildings $(104,890)(87,480)$

Equipment $521,070396,040$

Accumulated depreciation$-$equipment $(129,100)(113,110)$

Patents $45,09049,800$

Total assets $$904,250$ $$859,755$

Accounts payable $$21,840$ $$31,700$

Income taxes payable $4,9803,960$

Salaries and wages payable $5,0402,980$

Short$-$term notes payable $9,9309,930.$Long$-$term notes payable $59,47069,590$

Bonds payable $402,840402,840$

Premium on bonds payable $12,91015,975$

Common stock $238,670219,730$

Paid$-$in capital in excess ofpar$-$common stock $25,07017,430$

Retained earnings $123,50085,620$

Total liabilities and stockholders' equity $$904,250$ $$859,755$

Blue Company

Income Statement and Dividend Information

For the Year Ended December $31,2025$

Sales revenue $$1,165,110$

Cost of goods sold $740,980$

Gross margin $424,130$

Operating expenses

Selling expenses $$79,930$

Administrative expenses $157,160$

Depreciation$/$Amortization expense $38,110$

Total operating expenses $275,200$

Income from operations $148,930$

Other revenues$/$expenses

Gain on sale of land $8,010.$Gain on sale of short$-$term investment $3,960$

Dividend revenue $2,390$

Interest expense $(51,450)(37,090)$

Income before taxes $111,840$

Income tax expense $39,330$

Net income $72,510$

Dividends to common stockholders $(34,630)$

To retained earnings $$37,880.$Prepare a statement of cash flows for Blue Company using the direct me ethod accompanied by a reconciliation schedule. Assume the short$-$term investments are debt securities$,$ classified as available$-$for$-$sa ale. $($Show amounts in the investing and financing sections that decrease cash flow with either a $-$ sign e$.$g$.-15,000$ or in parenthesis e$.$g$.(15,0000).)$