Get Wired, Inc. Income Statement Year Ended December 31, 2025 Net Sales Revenue $445,000 Cost of Goods Sold 210,200 Gross Profit 234,800 Operating Expenses: Salaries Expense $75,400 Depreciation ExpensePlant Assets 14,300 Other Operating Expenses 10,000 Total Operating Expenses 99,700 Operating Income 135,100 Other Income and (Expenses): Interest Revenue 9,000 Interest Expense (21,200) Total Other Income and (Expenses) (12,200) Net Income Before Income Taxes 122,900 Income Tax Expense 19,400 Net Income $103,500

Additionally,

Get WiredGetWired,

Inc. purchased land of

24,500

by financing it 100% with long-term notes payable during 2025.

During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and the accumulated depreciation of the disposed asset was

$11,570.

The plant acquisition was for cash.

1.Prepare the 2025 statement of cash flows, formatting operating activities by the indirect method

2.How will what you learned in this problem help you evaluate an investment?

Get Wired, Inc. Comparative Balance Sheet December 31, 2025 and 2024 2025 2024 Assets Current Assets: Cash $26,900 $14,900 Accounts Receivable 27,200 25,300 Merchandise Inventory 79,400 91,000 Long-term Assets: Land 34,500 10,000 Plant Assets 124,870 110,940 Accumulated DepreciationPlant Assets (18,970) (16,240) Total Assets $273,900 $235,900 Liabilities Current Liabilities: Accounts Payable $35,900 $30,100 Accrued Liabilities 28,700 30,800 Long-term Liabilities: Notes Payable 75,000 102,000 Total Liabilities 139,600 162,900 Stockholders' Equity Common Stock, no par 88,000 64,700 Retained Earnings 46,300 8,300 Total Stockholders' Equity 134,300 73,000 Total Liabilities and Stockholders' Equity $273,900 $235,900

Get Wired, Inc. Statement of Cash Flows Year Ended December 31, 2025 Cash Flows from Operating Activities: Net Income 103500 Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities:

Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities:

Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities:

Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, December 31, 2024 Cash Balance, December 31, 2025 Non-cash Investing and Financing Activities:

Total Non-cash Investing and Financing Activities