Pina Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Pina Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 12/31/25 12/31/24 Cash $5,900 $6,900 Accounts receivable 61,400 50,800 Short-term debt investments (available-for-sale) 35,000 17,800 Inventory 40,000 59,400 Prepaid rent 5,000 3,900 Equipment 155,200 129,000 Accumulated depreciation-equipment (35.000) (25,000) Copyrights 45,600 49,900 Total assets $313,100 $292,700 Accounts payable $46,300 $39,800 Income taxes payable 3,900 6,100 Salaries and wages payable 7,900 3,900 Short-term loans payable 8,000 10,100 Long-term loans payable 60,100 68,400 Common stock, $10 par Paid-in capital, common stock 100,000 100,000 30,000 30,000 Retained earnings 56,900 34,400 Total liabilities and stockholders' equity $313,100 $292,700 Pina Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue $338,600 Cost of goods sold 174,500 Gross profit 164,100 Operating expenses 119.100 Operating income 45,000 Interest expense $11,400 Gain on sale of equipment 1.900 9.500 Income before tax 35.500 Income tax expense 7,100 Net income $28,400 Additional information: Dividends in the amount of $5,900 were declared and paid during 2025. 1 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2025. Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) (Show amounts in the investing and financing sections that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000)) PINA INC. STATEMENT OF CASH FLOWS For the Year Ended December 31, 2025 Cash Flows from Operating Activities Cash Received from Customers Less Cash Payments to Suppliers Cash Payments for Operating Expenses v Cash Payments for Interest 133500 24070 87830 328000 Cash Payments for Income Taxes 37700 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Purchase of Equipment Purchase of Investments Net Cash Used by Investing Activities Cash Flows from Financing Activities Principal Payment on Short-Term Loan Principal Payment on Long-Term Loan Dividend Payments Net Cash Red hv Financine Activities 7930 +46300 283100 Net Cash Used by Investing Activities Cash Flows from Financing Activities Principal Payment on Short-Term Loan Principal Payment on Long-Term Loan Dividend Payments Net Cash Used by Financing Activities Net Decrease in Cash Cash, January 1, 2025 Cash December 31, 2025