Current Attempt in Progress

Cullumber Land Company reported $$546,000$ of net income for $2025.$ The accountant, in preparing the statement of cash flows, noted

several items occurring during $2025$ that might affect cash flows from operating activities.

Cullumber declared a $$1\mathrm{.}50$ cash dividend. Ten thousand shares of $$1$ par common stock were outstanding at the date of

record.

Cullumber revised its estimate for warranty expense. Before $2025,$ Cullumber's warranty expense was $0\mathrm{.}5\%$ of its net sales. In

$2025,$ this percentage was increased to $0\mathrm{.}7\%.$ Net sales for $2025$ were $$5,704,000,$ and the accrued warranty expense

increased by $$85,000$ during $2025.$

Cullumber sold $500$ shares of treasury stock for $$43$ per share. The shares were originally purchased for $$38$ per share.

Depreciation expense is $$160,000.$

Cullumber issued $2,000$ shares of its $$1$ par common stock for a building. The market value of the shares on the date of the

transaction was $$42$ per share.

Cullumber holds $30\%$ of Windy Company's common stock as a long$-$term investment. Windy Company reported $$100,500$ of

net income and paid dividends of $$34,000$ for $2025.$

Cullumber purchased $500$ shares of Microsoft common at $$111$ per share and classified the investment as available$-$for$-$sale.

The market price increased to $$116$ per share by the end of the year.

Prepare a schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than

those listed above affected the computation of $2025$ net cash flow from operating activities. $($Show amounts that decrease cash flow with

either $a-$ sign e$.$g$.-15,000$ or in parenthesis e$.$g$.(15,000).)$

CULLUMBER CO$.$

Statement of Cash Flows $($Partial$)$

For the Year Ended December $31,2025$

Cash Flows from Operating Activities

Adjustments to reconcile net income to

Increase in Warranty Accrual

$