Sarasota Inc, a greeting card company, had the following statements prepared as of December 31, 2025. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{c} Sarasota Inc. \\ Comparative Balance Sheet \\ As of December 31, 2025 and 2024 \end{tabular}} \\ \hline & 12/31/25 & 12/31/24 \\ \hline Cash & $6,000 & $7,000 \\ \hline Accounts receivable: & 61,800 & 50,700 \\ \hline Short-term debt investments (available-for-sale) & 35,300 & 17,900 \\ \hline Inventory & 39,800 & 59,400 \\ \hline Prepaid rent & 4,900 & 4,000 \\ \hline Equipment & 153,100 & 130,500 \\ \hline Accumulated depreciation-equipment & (35,000) & (24,700) \\ \hline Copyrights & 45,900 & 50,500 \\ \hline Total assets & $311,800 & $295,300 \\ \hline Accounts payable & $46,000 & $39,700 \\ \hline Income taxes payable & 4,000 & 5,900 \\ \hline Salaries and wages payable & 8,100 & 4,100 \\ \hline \end{tabular} Additional information: 1. Dividends in the amount of $6,100 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 $19,800 and was 70% depreciated was sold during 2025 . 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.s. (15,000).) Question 12 of 13 \begin{tabular}{lrr} Salaries and wages payable & 8,100 & 4,100 \\ Short-term loans payable & 8,100 & 10,100 \\ Long-term loans payable & 59,900 & 68,600 \\ Common stock, $10 par & 100,000 & 100,000 \\ Paid-in capital, common stock & 30,000 & 30,000 \\ Retained earnings & 55,700 & 36,900 \\ \hline Total liabilities and stockholders' equity & $311,800 & $295,300 \\ \hline \end{tabular} Sarasota Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax $333,125 159,525173,600 40,625118,900 $11,500 2,000 9,50031,125 Adjustments to reconcile net income to Question 12 of 13 /1