Current Attempt in Progress The following are comparative balance sheets for Carla Vista Company. Carla Vista Company Comparative Balance Sheets December 31 2025 2024 Assets Cash $170,000 $55,000 Accounts receivable 220,000 190,000 Inventory 417,500 472,500 Land 200,000 250,000 Equipment 650,000 500,000 Accumulated depreciation-equipment (165,000) (80,000) Total $1,492,500 $1,387,500 Liabilities and Stockholders' Equity Accounts payable $97,500 $107,500 Bonds payable 375,000 500,000 Common stock ($1 par) 540,000 435,000 Retained earnings 480,000 345,000 Total $1,492,500 $1,387,500 Additional information: 1. Net income for 2025 was $232,500. 2. Depreciation expense was $85,000. 3. Cash dividends of $97,500 were declared and paid. 4. Bonds payable with a carrying value of $125,000 were redeemed for $125,000 cash. 5. Common stock was issued at par for $105,000 cash. 6. No equipment was sold during 2025. 7. Land was sold for its book value. Prepare a statement of cash flows for 2025 using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -45,000, or in parenthesis e.g. (45,000)). Prepare a statement of cash flows for 2025 using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -45,000, or in parenthesis e.g. (45,000)). CARLA VISTA COMPANY Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities : Depreciation Expense Decrease in Inventory Increase in Accounts Receivable Decrease in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Land Purchase of Equipment Net Cash Used by Investing Activities Cash Flows from Financing Activities Issuance of Common Stock Payment of Cash Dividends Redemption of Bonds Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period 85,000 232,500