Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2025.

Additional information:

1. Dividends in the amount of $6,000 were declared and paid during 2025.

2. Depreciation expense and amortization expense are included in operating expenses.

3. No unrealized gains or losses have occurred on the investments during the year.

4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2025.

Instructions

Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

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Brecker Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Paid-in capital, common stock Retained earnings Total liabilities and stockholders' equity 12/31/25 $ 6,000 62,000 35,000 40,000 5,000 154,000 (35,000) 46,000 $313,000 $ 46,000 4,000 8,000 8,000 60,000 100,000 30,000 57,000 $313,000 12/31/24 $ 7,000 51,000 18,000 60,000 4,000 130,000 (25,000) 50,000 $295,000 $ 40,000 6,000 4,000 10,000 69,000 100,000 30,000 36,000 $295,000