Statement of Cash Flows Required: Use the financial statements and other information provided below to prepare a statement of cash flows for Gresham Inc. for fiscal year 2026. Use the DIRECT method. Gresham Inc. Comparative Balance Sheets December 31, 2026 and 2025 Gresham Inc. Income Statement For the year ended December 31, 2026 December 31 2026 2025 81,000 153,000 43,000 340,000 (52,000) 565,000 Sales Cost of Goods Sold Gross Margin Depreciation Expense Other Operating Expenses Income from Operations Other Income (Expenses): Gain on Sale of Equipment Income before Income Taxes Income Taxes Expense Net Income 76,000 128,000 130,000 297,000 (79,000) 552,000 . 505,600 261,000 244,600 65,000 144,000 35,600 2,400 38,000 10,000 28,000 0 1 Assets 2 Cash 3 Accounts Receivable (net) 14 Merchandise Inventory 15 Equipment 16 Accum. Depr. 17 Totals 18 19 Liabilities & Stockholders' Equity 20 Accounts Payable 21 Income Taxes Payable 22 Long-term Note Payable 23 Common Stock 24 Paid-in Capital in Excess of Par 25 Retained Earnings 26 Totals 27 28 29 30 31 32 33 34 79,000 29,000 70,000 133,000 145,000 109,000 565,000 171,000 28,000 0 123,000 141,000 89,000 552,000 Additional Information: A. Cash paid for dividends B. Cash paid for other operating expenses C. Cash paid for income taxes D. Cash received from sale of equipment E, Cash paid for equipment F. Acquired equipment by signing long-term note G. Cash received from customers H. Cash received from issuing stock 1. Cash paid for merchandise inventory 8,000 144,000 9,000 3,900 66,500 70,000 480,600 14,000 266,000 D Hint: Cells with blue shading are for section heading labels and cells with yellow shading are 3 for section total labels or other line labels. 4 5 Gresham Ino. 6 Statement of Cash Flows 7 For the year ended December 31, 2026 8 9 Cash flows from operating activities: 10 11 12 13 14 15 16 Net cash flows from operating activities 17 Cash Flows from investing activities: 18 19 20 21 23 24 Net cash flows from investing activities 25 Cash flows from financing activities: 26 27 28 29 30 32 Net oash flows from financing activities 33 Net increase (decrease in cash 34 Beginning cash balance 35 Ending cash balance 36 37 Non-Cash Investing and Financing Activities 38 39 40. Reconciliation of Net Income to Net Cash Flows from Operating Activities 41 43 14 45 46 47 49 49 50 51 62 Nethews from operating activities 03 54 B4 G A D E Reconciliation Worksheet Note: Enter all amounts in this Worksheet as POSITIVE numbers. (Use the absolute value for all amounts in this worksheet.) 3 ADD Non-Cash Expenses S 8 7 ADD Losses and DEDUCT Gains 8 9 110 11 Adjust for accruals -- Non-Cash, Current, Operating Assets & Liabilities Increase Ending Beginning Change in or 12 Account Balance Balance Balance Decrease 13 14 15 16 17 18 19 20 21 22 23 Assets Liabilities 24 225 26 27 28 29 BO 31 BO Information Stmt of Cash Flows Reconci