Waterway Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Waterway Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 12/31/25 12/31/24 Cash $5,900 $6,900 Accounts receivable 61,400 51,200 Short-term debt investments (available-for-sale) 34,700 18,000 Inventory 40,200 59,700 Prepaid rent 5,000 4,100 Equipment 152,700 130,200 Accumulated depreciation-equipment (35,400) (25,000) Copyrights 45,700 49,900 Total assets $310,200 $295,000 Accounts payable $46,300 $40,400 Income taxes payable 3,900 6,000 Salaries and wages payable 8,100 3,900 Short-term loans payable 8,100 10,100 Long-term loans payable 60,200 69,400 Common stock, $10 par 100,000 100,000 Paid-in capital, common stock 30,000 30,000 Retained earnings 53,600 35,200 Total liabilities and stockholders' equity $310,200 $295,000 Waterway Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue $335,075 Cost of goods sold 175,200 Gross profit 159,875 Operating expenses 120,100 Operating income 39,775 Interest expense $11,400 Gain on sale of equipment 2,000 9,400 Income before tax 30,375 Income tax expense 6,075 Net income $24,300 Additional information: 1. Dividends in the amount of $5,900 were declared and paid during 2025. 2. 3. 4. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2025. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesise.g. (15,000).) WATERWAY INC. STATEMENT OF CASH FLOWS For the Year Ended December 31, 2025 Adjustments to reconcile net income to $