STELLAR COMPANY

Partial Statement of Cash Flows

For the Year Ended December $31,2025$

Stellar Company Income Statement For the Year Ended December 31, 2025 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net income Additional information: $1,990,000 410,000 700,000 $6,250,000 1,490,000 1,110,000 $380,000 1. 2. 3. 4. 5. Accounts receivable decreased $280,000 during the year. Prepaid expenses increased $160,000 during the year. Accounts payable to suppliers of merchandise decreased $250,000 during the year. Accrued expenses payable decreased $110,000 during the year. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for Stellar Company, 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).) STELLAR COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2025 v