Tree Top Company's comparative balance sheet and additional data are shown below. (Click the icon to view the comparative balance sheet.) (Click the icon to view the additional data.) Requirement Prepare the statement of cash flows for the year ended December 31, 2025, using the indirect method. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Tree Top Company Statement of Cash Flows Year Ended December 31, 2025 Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities Tree Top Company Comparative Balance Sheet December 31, 2025 and 2024 2025 2024 Assets Current Assets: $ 1,715,450 $ 5,990 31,000 0 3,300 8,000 Cash Short-term Investments, net Accounts Receivable, net Merchandise Inventory Office Supplies Prepaid Rent Property, Plant, and Equipment: 1,100 0 100 600 0 3,800 Land 250,000 100,000 Building 652,000 202,000 Canoes 11,520 11,520 Office Furniture and Equipment 0 100,000 (26,540) Accumulated Depreciation-PP&E (1,880) 2,737,930 $ 330,030 Total Assets Liabilities Current Liabilities: $ 7,280 $ 5,120 390 290 880 280 4,300 1,400 14,000 0 Accounts Payable Utilities Payable Telephone Payable Wages Payable Notes Payable Interest Payable Unearned Revenue Long-Term Liabilities: Notes Payable Mortgage Payable Bonds Payable 480 80 450 150 4,800 4,800 225,000 0 0 1,200,000 (1,560) Discount on Bonds Payable Total Liabilities 1,456,020 12,120 Stockholders' Equity Paid-In Capital: Preferred Stock 60,000 0 Paid-In Capital in Excess of ParPreferred 90,000 0 Common Stock 356,000 316,000 Paid-In Capital in Excess of ParCommon 0 440,000 335,910 1,910 Retained Earnings Total Stockholders' Equity 1,281,910 317,910 $ 2,737,930 $ 330,030 Total Liabilities and Stockholders' Equity 1. The income statement for 2025 included the following items: a. Net income, $408,000 b. Depreciation expense for the year, $24,660. c. Amortization on the bonds payable, $260. 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash except the land, which was acquired by issuing preferred stock. 3. The company issued bonds payable with a face value of $1,200,000, receiving cash of $1,198,180. 4. The company distributed 3,000 shares of common stock in a stock dividend when the market value was $13.00 per share. All other dividends were paid in cash. 5. The common stock, except for the stock dividend, was issued for cash. 6. The cash receipt from the notes payable in 2025 is considered a financing activity because it does not relate to operations. Cash Flows From Investing Activities: Cash Payment for Acquisition of Plant Assets Net Cash Provided by (Used for) Investing Activities Cash Flows From Financing Activities: Cash Receipt from Issuance of Notes Payable Cash Receipt from Issuance of Mortgage Payable Cash Receipt from Issuance of Bonds Payable Cash Receipt from Issuance of Common Stock Cash Payment of Dividends Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, Dec. 31, 2024 Cash Balance, Dec. 31, 2025 Non-cash Investing and Financing Activities: Acquisition of land by issuing preferred stock Tear Ended December 31, 202 Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Depreciation Expense Amortization Expense Decrease in Accounts Receivable Increase in Merchandise Inventory Decrease in Office Supplies Decrease in Prepaid Rent Increase in Accounts Payable Increase in Utilities Payable Increase in Telephone Payable Increase in Wages Payable Increase in Interest Payable Increase in Unearned Revenue Increase in Short-term Investments Net Cash Provided by (Used for) Operating Activities