Vaughn Company had available at the end of 2025 the following information. Vaughn Company Comparative Balance Sheets As of December 31,2025 and 2024 Cash $10,0102025$3,9602024 Accounts receivable Short-term investments Inventory Prepaid rent 20,54012,870 Prepaid insurance Supplies 21,94030,040 Land Buildings 42,23035,000 Accumulated depreciation-buildings (105,630)(87,580) Equipment 525,580402,170 Accumulated depreciation-equipment (130,150)(112,750) Patents Total assets Accounts payable $21,9805,0204,970$32,2804,0402,980 Income taxes payable Salaries and wages payable Short-term notes payable Long-term notes payable 10,08059,65010,08070,340 Bonds payable 403,510403,510 Premium on bonds payable Common stock 20,83027,016 Paid-in capital in excess of par-common stock 25,01017,590 Retained earnings Total liabilities and stockholders' equity Vaughn Company Income Statement and Dividend Information For the Year Ended December 31, 2025 Sales revenue $1,151,900748,570403,330 Cost of goods sold Gross margin Operating expenses Selling expenses $78,900 Administrativeexpenses155,770 Depreciation/Amortization expense 40,440 Total operating expenses Income from operations 128,220275,110 Other revenues/expenses Gain on sale of land 7,950 Gain on sale of short-term investment 4,030 Dividend revenue 2,430 Interest expense Income before taxes 90,360(37,860)(52,270) 52,64037,720 Dividends to common stockholders To retained earnings \begin{tabular}{l} (17,800) \\ \hline$34,840 \\ \hline \hline \end{tabular} Reconciliation Schedule Reconciliation of Net Income to Net Cash Provided by Operating Activities Net Income $ Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation/Amortization Expense $ Decrease in Prepaid Rent Increase in Income Taxes Payable Increase in Salaries and Wages Payable Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Insurance Increase in Supplies Decrease in Accounts Payable Gain on Sale of Land Gain on Sale of Short-term Investments Amortization of Bond Premium Total Adjustments Net Cash Provided by Operating Activities $