Item$12/31/2512/31/24$Cash$$5,900$$$7,000$Accounts receivable$$62,500$$$51,200$Short$-$term debt investments $($available$-$for$-$sale$)$$$35,300$$$17,900$Inventory$$39,800$$$60,100$Prepaid rent$$5,100$$$3,900$Equipment$$155,200$$$130,400$Accumulated depreciation$$equipment$($$$34,700)($$$25,200)$Copyrights$$45,500$$$50,400$Total assets$$314,600$ Accounts payable$$46,100$$$39,900$Income taxes payable$$4,100$$$6,000$Salaries and wages payable$$8,000$$$4,000$Short$-$term loans payable$$8,000$$$10,100$Long$-$term loans payable$$60,400$$$69,100$Common stock, $$10$ par$$100,000$$$100,000$Paid$-$in capital, common stock$$30,000$$$30,000$Retained earnings$$58,000$$$36,600$Total liabilities and stockholders$$ equity$$314,600$

Monty Inc.

Income Statement

For the Year Ending December $31,2025$

ItemAmountSales revenue$$340,650$Cost of goods sold$$175,900$Gross profit$$164,750$Operating expenses$$121,000$Operating income$$43,750$ Interest expense$$11,500$Gain on sale of equipment$$2,000$Income before tax$$34,250$Income tax expense$$6,850$Net income$$27,400$ Additional Information:

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

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 $$20,200$ and was $70\%$ depreciated was sold during $2025.$

Instructions:

The problem asks to prepare a Statement of Cash Flows using the Direct Method. It specifies to adjust for cash inflows and outflows in the investing and financing sections using a negative sign $(-)$ or parentheses $(15,000)$ for decreases in cash flow.