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.

Use the template below to prepare the statement of cash flows for Gresham Inc. for 2026.(Use the template on the "Reconcilation work sheet" tab to calculate/document the items for the Reconcilation.) Hint: Cells with blue shading are for section heading labels and cells with yellow shading are for section total labels or other line labels.

Reconciliation Worksheet

Note: Enter all amounts in this Work sheet as POSITIVE numbers. (Use the absolute value for all amounts in this Worksheet.)

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. Gresham Inc. Comparative Balance Sheets December 31, 2026 and 2025 Income Statement For the year ended December 31, 2026 December 31 2026 2025 Assets Cash Accounts Receivable (net) Merchandise Inventory Equipment Accum. Depr. Totals 505,600 261,000 244,600 65,000 144,000 35,600 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 2,400 38,000 10,000 28,000 Liabilities & Stockholders' Equity Accounts Payable Income Taxes Payable Long-term Note Payable Common Stock Paid-in Capital in Excess of Par Retained Earnings Totals 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 Use the template below to prepare the statement of cash flows for Gresham Inc. for 2026. (Use the template on the "Reconcilation worksheet" tab to calculate/document the items for the Reconcilation.) Hint: Cells with blue shading are for section heading labels and cells with yellow shading are for section total labels or other line labels. Reconciliation Worksheet Note: Enter all amounts in this Worksheet as POSITIVE numbers. (Use the absolute value for all amounts in this Worksheet.) ADD Non-Cash Expenses ADD Losses and DEDUCT Gains Adjust for accruals -- Non-Cash, Current, Operating Assets & Liabilities Increase Ending Balance Beginning Change in Balance Balance or Decrease Account Assets Liabilities