Skysong Inc., a greeting card company, had the following statements prepared as of December $31,2025.$

Skysong Inc.

Comparative Balance Sheet As of December $31,2025$ and $2024$

$12/31/2512/31/24$

Cash $$5,900$ $$7,000$

Accounts receivable $61,50051,300$

Short$-$term debt investments $($available$-$for$-$sale$)35,00017,800$

Inventory $40,40060,200$

Prepaid rent $5,0004,000$

Equipment $153,400129\mathrm{.}000$

Accumulated depreciation$-$equipment $(35,100)(25,100)$

Copyrights $46,30049,600$

Total assets $$312,400$ $$293,800$

Accounts payable $$46,500$ $$40,200$

Income taxes payable $4,1006,000$

Salaries and wages payable $8,1004,000$

Short$-$term loans payable $7,90010,000$

Long$-$term loans payable $60,20068,700$

Common stock,$$10$ par $100\mathrm{.}000100,000$

Paid$-$in capital,common stock $30,00030,000$

Retained earnings $55,60034,900$

Total liabilities and stockholders' equity $$312,400$ $$293,800.$ Skysong Inc. Income Statement

For the Year Ending December $31,2025$

Sales revenue $$338,750$

Cost of goods sold $176,400$

Gross proft $162,350$

Operating expenses $119,600$

Operating income $42,750$

Interest expense $$11,500$

Gain on sale ofequipment $2,0009,500$

Income before tax $33,250$

Income tax expense $6,650$

Net income $$26,600$

Additional information:

$1.$ Dividends in the amount of $$5,900$ 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 $$19,900$ and was $70\%$ depreciated was sold during$2025.$Prepare a statement of cash flows using the direct method. $($Do not prepare a reconciliation schedule.$)($Show amounts in the investing and financing sections that decrease cash flow with either a $-$sign e$.$g$.-15,000$ or in parenthesis e$.$g$.(15,000).)$

SKYSONG INC.

STATEMENT OF CASH FLOWS

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