The income statement, balance sheets, and additional information for Peterson Incorporated are provided.

PETERSON INCORPORATEDIncome StatementFor the Year Ended December 31, 2024Net sales $2,580,000Gain on sale of land 6,000Total revenues 2,586,000Expenses: Cost of goods sold$1,640,000 Operating expenses613,000 Depreciation expense31,000 Interest expense32,000 Income tax expense78,000 Total expenses 2,394,000Net income $192,000

PETERSON INCORPORATEDBalance SheetsDecember 31 20242023Assets Current assets: Cash$355,520$291,840Accounts receivable66,20082,000Inventory157,000143,000Prepaid rent4,4806,960Long-term assets: Investments213,000120,000Land214,000268,000Equipment246,000218,000Accumulated depreciation(140,000)(109,000)Total assets$1,116,200$1,020,800Liabilities and Stockholders' Equity Current liabilities: Accounts payable$34,000$96,000Interest payable5,0003,800Income tax payable24,20028,000Long-term liabilities: Notes payable261,000233,000Stockholders' equity: Common stock438,000380,000Retained earnings354,000280,000Total liabilities and stockholders equity$1,116,200$1,020,800

Additional Information for 2024:

1. Purchased additional investment in stocks for $93,000.
2. Sold land for $60,000. The land originally was purchased for $54,000, resulting in a $6,000 gain being recorded at the time of the sale.
3. Purchased $28,000 in equipment by issuing a $28,000 long-term note payable to the seller. No cash was exchanged in the transaction.
4. Declared and paid a cash dividend of $118,000.
5. Issued common stock for $58,000.

Required:

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)

PETERSON INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities