Comparative balance sheet accounts of Windsor Inc. are presented below.

Windsor Inc. Comparative Balance Sheet

Accounts As of December 31, 2025 and 2024

December 31 2025 2024

Debit Accounts

Cash $42,300 $34,000

Accounts Receivable 70,600 59,600

Inventory 30,000 23,900

Equity Investments 22,500 38,700

Machinery 29,700 18,600

Buildings 67,900 56,600

Land 7,500 7,500

$270,500 $238,900

Credit Accounts

Allowance for Doubtful Accounts $2,200 $1,500

Accumulated DepreciationMachinery 5,700 2,300

Accumulated DepreciationBuildings 13,600 8,900

Accounts Payable 34,800 24,500

Accrued Payables 3,300 2,700

Long-Term Notes Payable 21,200 31,200

Common Stock, no-par 150,000 125,000

Retained Earnings 39,700 42,800

$270,500 $238,900

Additional data (ignoring taxes):

1. Net income for the year was $43,100.

2. Cash dividends declared and paid during the year were $21,200.

3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized.

4. Equity investments (level of ownership is less than 20%) that cost $25,000 were sold during the year for $28,700. No unrealized gains and losses were recorded on these investments in 2025.

5. Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150.

Windsors 2025 income statement follows (ignoring taxes).

Sales revenue $544,200

Less: Cost of goods sold 383,000

Gross margin 161,200

Less: Operating expenses (includes $8,850 depreciation and $5,733 bad debts) 121,000

Income from operations 40,200 Other:

Gain on sale of investments $3,700

Loss on sale of machinery (800) 2,900

Net income $43,100

Your answer is incorrect. Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Net cash flow from operating activities $ eTextbook and Media Assistance Used Save for Later Attempts: 1 of 3 used Submit Answer 66200