correctly

Indigo Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements for 2025 are provided below. COMPARATIVE BALANCE SHEETS 12/31/25 12/31/24 Cash $407000 $194000 Accounts receivable 360000 214000 Inventory 384000 482000 Property, plant, and equipment $606000 $960000 Less accumulated depreciation (319000) 287000 (303000) 657000 $1438000 $1547000 Accounts payable $175000 $97000 Income taxes payable 354000 392000 Bonds payable 361000 600000 Common stock 214000 214000 Retained earnings 334000 244000 $1438000 $1547000 For the Year Ended December 31, 2025 Sales revenue $8380000 Cost of sales 7152000 Gross profit 1228000 Selling expenses $599000 Administrative expenses 190000 789000 Income from operations 439000 Interest expense 71000 Income before taxes 368000 Income taxes 96000 Netincome $272000 The following additional data were provided: 1. Dividends for the year 2025 were $182000. 2. During the year, equipment was sold for $241000. This equipment cost $354000 originally and had a book value of $287000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. Alldepreciation expense is in the selling expense category. Under the direct method, the cash received from customers is