Carla Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Carla as of May 31, 2025, are as follows. The company is preparing its statement of cash flows: \begin{tabular}{lrrr} Prepaid expenses & 8,700 & 7,000 \\ Total current assets & 331,800 & 333,700 \\ \hline \end{tabular} Plant assets \begin{tabular}{lrr} Plant assets & 602,200 & 501,500 \\ Less: Accumulated depreciation-plant assets & 148,800 & 125,400 \\ Net plant assets & 376,100453,400 \\ Total assets & $785,200 & $709,800 \\ \hline \end{tabular} Current liabilities Accounts payable Salaries and wages payable $123,30047,200$114,70071,700 Current liabilities \begin{tabular}{lrr} Accounts payable & $123,300 & $114,700 \\ Salaries and wages payable & 47,200 & 71,700 \\ Interest payable & 26,900 & 25,200 \\ \( { } } \) & 197,400 & 211,600 \\ \hline \end{tabular} Long-term debt Bonds payable Total liabilities 267,40070,000311,600100,000 Stockholders' equity Common stock, $10 par 370,000280.000 Total liabilities 267,400311,600 Stockholder' equity Commonstock,$10parRetainedearningsTotackholdersequityTotalliabilitiesandstockholdersequity370,000147,800517,800$785,200280,000118,200398,200$709,800 \begin{tabular}{|lr|} \hline \begin{tabular}{c} \hline \multicolumn{1}{|c|}{ Carla Company } \\ Income Statement \end{tabular} \\ For the Year Ended May & 31,2025 \\ \hline Sales revenue & $1,248,500 \\ Cost of goods sold & 727,200 \\ \hline \end{tabular} Grossprofit 521,300 Expenses \begin{tabular}{lr} Salaries and wages expense & 251,100 \\ Interest expense & 74,900 \\ Depreciation expense & 23,400 \\ Other expenses & 8,100 \\ Total expenses & 357,500 \\ Operating income & 163,800 \\ Income tax expense & 43,500 \\ Net income & $120,300 \\ \hline \end{tabular} The following is additional information concerning Carla's transactions during the year ended May 31,2025. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable account. 3. Plant assets costing $100,700 were purchased by paying $29,700 in cash and issuing 7,100 shares of stock. 4. The "other expenses" are related to prepaiditems. 5. All income taxes incurred during the year were paid during the year. 6. In order to supplement its cash, Carla issued 1,900 shares of common stock at par value. 7. Cashdividends of $90,700 were declared and paid at the end of the fiscal year. Preparea statement of cash flows for Caria Company for the year ended May 31, 2025, using the direct method. (A reconciliation of net income to net cash provided is not required.) (Show amounts in the investing and financing sections that decrease cash flow with either asign e.g. 15,000 or in parenthesis e.g. (15,000)) Cash payments: . $ 5 * $
