The comparative statement of financial position of Credit Valley Inc. as at December $31,2025,$ and a statement of comprehensive income for the $2025$ fiscal year follow: Required: See the below requirements Credit Valley Inc Statement of Financial Position $31-$Dec$-2531-$Dec $20252024$ Assets Cash $$20,000$ $$38,000$ Accounts receivable $72,00065,000$ Inventory $103,00095,000$ Prepaid expenses $8,5006,000$ FV$-$OCI Investments $47,00045,000$ Equipment $181,000162,000$ Accumulated depreciation $(37,000)(25,000)$ Total $$394,500$ $$386,000$ Liabilities and Shareholders' Equity Accounts payable $$115,300$ $$87,000$ Income tax payable $2,0003,000$ Dividends payable $3,2000$ Long$-$term notes payable $84,000119,000$ Common shares $31,00024,000$ Retained earnings $148,000144,000$ Accumulated other comprehensive income $11,0009,000$ $$394,500$ $$386,000$ Credit Valley Inc Statement of Comprehensive Income For the year ended $12/31/2025$ Net sales $$415,000$ Cost of goods sold $240,000$ Gross profit $175,000$ Operating expenses $120,000$ Income from operations $55,000$ Interest expense $9,000$ Income before income tax $46,000$ Income tax $6,000$ Net income $40,000$ Other comprehensive income Unrealized gain or loss$-$OCI $2,000$ Comprehensive income $$42,000$ Additional information: a$.$ Credit Valley follows ASPE. b$.$ Operating expenses include $$12,000$ in depreciation expense. c$.$ There were no disposals of equipment during the year. d$.$ Common shares were issued for cash. e$.$ During the year, Credit Valley acquired $$15,000$ of equipment in exchange for long$-$term notes payable. f$.$ Assume unexplained changes in accounts stem from logical transactions. Required: $1.$ Prepare the SCF$,$ using the indirect method, using the template provided under the Excel tab titled Q$3$ Req $1.$ Ensure that you link all numbers and use Excel for any calculations. $2.$ Prepare the operating section of the SCF only, using the direct method, using the template provided under the Excel tab titled Q$3$ Req $2.$ Ensure that you link all numbers and use Excel for any calculations. Requirement $1$ Credit Valley Inc. Cash Flow Statement For the year ended $12/31/2025$ Operating activities: Net income $$40,000$ Adjustments for non$-$cash items: Depreciation and amortization Changes in net working capital: Accounts receivable increase Inventory increase Increase in prepaid expenses Accounts payable increase Income tax payable decrease Net cash flows from operations $40,000$ Investing activities: Purchase of equipment Net cash flows used for investing $0$ Financing activities: Repayment of notes payable Common shares issued Cash dividends paid Net cash flows used for financing $0$ Net increase $($decrease$)$ in cash $40,000$ Cash balance beginning of the year $38,000$ Cash balance end of the year $$78,000$ Requirement $2$ Credit Valley Inc. Cash Flow Statement For the year ended $12/31/2025$ Operating activities: Cash received from customers$(1)$ Cash paid to suppliers $(2)$ Cash paid for operating expenses $(3)$ Cash paid for interest Cash paid for income tax $(4)$ Net cash flows from operations $0$