Presented below are the $2025$ income statement and comparative balance sheets for Blackburn Inc.

Blackburn Inc. Income Statement For the Year Ended December $31,2025$

Sales revenue $$14,250$

Service revenue $3,100$

Total revenue $$17,350$

Operating expenses:

Cost of goods sold $$7,200$

Selling $2,400$

General and administrative $1,500$

Total operating expenses $11,100$

Operating income $$6,250$

Gain on sale of equipment $300$

Interest expense $200$

Income before income taxes $6,350$

Income tax expense $2,500$

Net Income $$3,850$

Blackburn Inc. Comparative Balance Sheets As of December $31,2025$ and $2024$ Assets:

$12/31/2512/31/24$

Cash $$6,350$ $$3,200$

Accounts receivable $3,5001,200$

Inventory $4,0003,000$

Prepaid rent $150300$

Plant and equipment $14,50012,000$

Less: Accumulated Depreciation $(5,100)(4,500)$

Total Assets $$23,400$ $$15,200$

Liabilities and shareholders$$ equity

Accounts payable $$2,400$ $$2,100$

Interest payable $1000$

Deferred service revenue $800600$

Income taxes payable $550800$

Loan payable $($due $12/31/2028)5,0000$

Common stock $9,0009,000$

Retained earnings $5,5502,700$

Total liabilities and shareholders$$ equity $$23,400$ $$15,200$

Additional information for the $2025$ fiscal year:

$1.$ Cash dividends of $$1,000$ were declared and paid.

$2.$ Equipment costing $$4,000$ was purchased for cash.

$3.$ Equipment with a cost of $$1,500$ and accumulated depreciation of $$1,000$ was sold for $$800.$

$4.$ Depreciation of $$1,600$ is included in operating expenses.

INSTRUCTIONS: Use the indirect method to prepare a properly formatted Statement of Cash Flows for $2025$