Cullumber 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 Cullumber as of May 31, 2025, are as follows. The company is preparing its statement of cash flows. Cullumber Company Comparative Balance Sheet Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Plant assets As of May 31 2025 2024 $28,000 $20,200 74,600 58,500 218,400 249,700 9,100 7,000 330,100 335,400 Plant assets 597,200 506,700 Less: Accumulated depreciation-plant assets 150,200 123,900 Net plant assets 447,000 382,800 Total assets $777,100 $718,200 Current liabilities Accounts payable $123,800 $115,800 Salaries and wages payable 47,600 72,700 Interest payable 26,700 25,200 Total current liabilities 198,100 213,700 Long-term debt Bonds payable Total liabilities Stockholders' equity Common stock, $10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 70,000 100,000 268,100 313,700 370,000 280,000 139,000 124,500 509,000 404,500 $777,100 $718,200 Cullumber Company Income Statement For the Year Ended May 31, 2025 Sales revenue Cost of goods sold Gross profit $1,245,800 715,200 530,600 Expenses Salaries and wages expense 249,800 Interest expense 74,200 Depreciation expense 26,300 Other expenses 8,100 Total expenses 358,400 Operating income 172,200 Income tax expense 42,600 Net income $129,600 The following is additional information concerning Cullumber'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. 4. 5. 6. 7. Plant assets costing $90,500 were purchased by paying $19,500 in cash and issuing 7,100 shares of stock. The "other expenses" are related to prepaid items. All income taxes incurred during the year were paid during the year. In order to supplement its cash, Cullumber issued 1,900 shares of common stock at par value. Cash dividends of $115,100 were declared and paid at the end of the fiscal year. (b) Prepare a statement of cash flows for Cullumber 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 a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)