The current sections of Sunn Inc.’s balance sheets at December 31, 2024 and 2025, are presented here. Sunn’s net income for 2025 was $153,000. Depreciation expense was $27,000.

InstructionsPrepare the operating activities section of the company’s statement of cash flows for the year ended December 31, 2025, using the indirect method.

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Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Current liabilities Accrued expenses payable Accounts payable Total current liabilities 2025 $105,000 80,000 168,000 27,000 $380,000 $ 15,000 85,000 $100,000 2024 $ 99,000 89,000 172,000 22,000 $382,000 $ 5,000 92,000 $ 97,000