Question 2 of 2 < 27.59/50 Bonita Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. December 31 2025 2024 Cash $38,800 $12,900 Accounts receivable 12,200 10,000 Inventory 12,000 10,000 Equity investments -0- 3,000 Buildings -0- 29,900 Equipment 39,900 19,800 Copyrights 5,000 5,200 Totals $107,900 $90,800 Allowance for doubtful accounts $2,900 $4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-buildings -0- 6,100 Accounts payable 5,000 3,900 Question 2 of 2 Accounts payable 5,000 3,900 Dividends payable -0- 5,000 Notes payable, short-term (nontrade) 3,000 4,000 Long-term notes payable 36,000 25,000 Common stock 38,000 33,000 Retained earnings 21,000 4,800 $107,900 $90,800 Additional data related to 2025 are as follows. 27.59/50 E : 1. Equipment that had cost $11,100 and was 30% depreciated at time of disposal was sold for $2,400. 2. $5,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $5,000. 4. On January 1, 2025, the building was completely destroyed by a flood. Insurance proceeds on the building were $33,300 (net of $4,100 taxes). 5. Equity investments (ownership is less than 20% of total shares) were sold at $1,500 above their cost. No unrealized gains or losses were recorded in 2025. 6. Cash of $15,200 and a long-term note for $16,000 were given for the acquisition of equipment. 7. Interest of $2,000 and income taxes of $5,100 were paid in cash. Question 2 of 2 < > BONITA CORPORATION Statement of Cash Flows For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities : Loss on Sale of Equipment Gain from Flood Damage Depreciation Expense Copyright Amortization Gain on Sale of Investment Increase in Accounts Receivable (Net) Increase in Inventory > > > $ LA 27.59/50 16200 == Question 2 of 2 < > Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Investments Sale of Equipment Purchase of Equipment (Cash) Proceeds from Flood Damage to Building Net Cash Provided by Investing Activities Cash Flows from Financing Activities Devment of Dividende 27.59/50 Question 2 of 2 Purchase of Equipment (Cash) Proceeds from Flood Damage to Building Net Cash Provided by Investing Activities < Cash Flows from Financing Activities Payment of Dividends Payment of Short-term Notes Payable Net Cash Used by Financing Activities Net Increase in Cash Cash, January 1, 2025 Cash, December 31, 2025 > > Supplemental disclosures of cash flow information: +A 27.59/50 E III