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Brecker Inc.
Comparative Balance Sheet
As of December 31, 2025 and 2024
			12/31/25	12/31/24
Cash			$6,000	$7,000
Accounts receivable			62,000	51,000
Short-term debt investments (available-for-sale)			35,000	18,000
Inventory			40,000	60,000
Prepaid rent			5,000	4,000
Equipment			154,000	130,000
Accumulated depreciationequipment			(35,000)	(25,000)
Copyrights			46,000	50,000
Total assets			$313,000	$295,000
Accounts payable			$46,000	$40,000
Income taxes payable			4,000	6,000
Salaries and wages payable			8,000	4,000
Short-term loans payable			8,000	10,000
Long-term loans payable			60,000	69,000
Common stock, $10 par			100,000	100,000
Paid-in capital, common stock			30,000	30,000
Retained earnings			57,000	36,000
Total liabilities and stockholders equity			$313,000	$295,000

Brecker Inc.
Income Statement
For the Year Ending December 31, 20
Sales revenue				$338,150
Cost of goods sold				175,000
Gross profit				163,150
Operating expenses				120,000
Operating income				43,150
Interest expense			$11,400
Gain on sale of equipment			2,000	9,400
Income before tax				33,750
Income tax expense				6,750
Net income				$27,000

Additional information:
1	Dividends in the amount of $6,000 were declared and paid during 2025.
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 $20,000 and was 70% depreciated was sold during 2025.

Instructions

Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)