Question 4 of 4 Condensed financial data of Carla Vista Inc. follow. Carla Vista Inc. Comparative Balance Sheets December 31 2025 2024 Assets Cash $202,000 $121,000 Accounts receivable 219,500 95,000 Inventory 281,250 257,125 Prepaid expenses 71,000 65,000 Long-term investments 345,000 272,500 Plant assets 712,500 606,250 Accumulated depreciation (125,000) (130,000) Total $1,706,250 $1,286,875 Liabilities and Stockholders' Equity Accounts payable $255,000 $ 168,250 Accrued expenses payable 41,250 52,500 Bonds payable 275,000 365,000 Common stock 550,000 437,500 -/1 Question 4 of 4 Liabilities and Stockholders' Equity Accounts payable $255,000 $ 168,250 Accrued expenses payable 41,250 52,500 Bonds payable 275,000 365,000 Common stock 550,000 437,500 Retained earnings 585,000 263,625 Total $1,706,250 $1,286,875 Carla Vista Inc. Income Statement Data For the Year Ended December 31, 2025 Sales revenue $971,150 Less: Cost of goods sold $338,650 Operating expenses, excluding depreciation 31,025 Depreciation expense 116,250 Income tax expense 68,200 Interest expense 11,825 Loss on disposal of plant assets 18,750 584,700 - / 1 SUPPORT Question 4 of 4 < Net income Additional information: $386,450 -/1 E : 1. New plant assets costing $250,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $143,750 and accumulated depreciation of $121,250 were sold for $3,750 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $65,075 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CARLA VISTA INC. Statement of Cash Flows - Indirect Method Adjustments to reconcile net income to Screenshot 2023-12-06 at 01.47.43 $ = SUPPORT