Pronghorn Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Pronghorn Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 12/31/25 12/31/24 Cash $5,900 $7,000 Accounts receivable 62,500 51,200 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 60,100 Prepaid rent 5,100 3,900 Equipment 155,200 130,400 Accumulated depreciation-equipment (34,700) (25,200) Copyrights Total assets 45,500 50,400 $314,600 $295,700 Accounts payable $46,100 $39,900 Income taxes payable 4,100 6,000 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,000 10,100 Long-term loans payable 60,400 69,100 Common stock, $10 par 100,000 100,000 Paid-in capital, common stock 30,000 30,000 Retained earnings 58,000 36,600 Total liabilities and stockholders' equity $314,600 $295,700 Pronghorn Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue Cost of goods sold $340,650 175,900 Gross profit Operating expenses 164,750 121,000 Operating income 43,750 Interest expense $11,500 Gain on sale of equipment 2,000 9,500 Income before tax 34,250 Income tax expense 6,850 Net income $27,400 Additional information: Dividends in the amount of $6,000 were declared and paid during 2025. Depreciation expense and amortization expense are included in operating expenses. 1. 2. 3. 4. Equipment that had a cost of $20,200 and was 70% depreciated was sold during 2025. No unrealized gains or losses have occurred on the investments during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg. (15,000).)