complete TEAL COMPANY Partial Statement of Cash Flows

cash flows from operating activities:

net income:

there are 6 entries to make for "adjustments to reconcile net income to:"

you can pick from

1) desrease in AP

2) dec. in AR

3) dec. in accrued exp. pay.

4) dec in inventory

5) dec. in prepaid expenses

6) dep. exp.

7) inc. in AP

8) inc. in AR

9) inc. in accr. exp. pay.

10) inc. in inv.

11) inc. in prepaid exp.

12) net income

net cash provided or used by operating activities:

there should be 9 entries of numbers for this question.

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for Teal Company, using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. 15,000 or in parenthesis eg. (15,000) ) Net Cash Used by Investing Activities Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Accrued Expenses Payable Decrease in Inventory Decrease in Prepaid Expenses Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Accrued Expenses Payable Increase in Inventory Increase in Prepaid Expenses Net Income Net Cash Provided by Operating Activities Teal Company Income Statement For the Year Ended December 31, 2025 Sales revenue $6,500,000 Cost of goods sold \begin{tabular}{|c|c|c|} \hline Beginning inventory & $2,070,000 & \multirow[b]{5}{*}{4,350,000} \\ \hline Purchases & 4,030,000 & \\ \hline Goods available for sale & 6,100,000 & \\ \hline Ending inventory & 1,750,000 & \\ \hline Cost of goods sold & & \\ \hline Gross profit & & 2,150,000 \\ \hline \multicolumn{3}{|l|}{ Operating expenses } \\ \hline Selling expenses & 420,000 & \\ \hline Administrative expenses & 690,000 & 1,110,000 \\ \hline \end{tabular} Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $190,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $270,000 during the year: 4. Accrued expenses payable decreased $140,000 during the year. 5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for Teal Company, using the indirect method. (Show amounts that decrease cash flow with either a-sign es. 15,000 or in parenthesises. (15,000) )