Question $3$: $(19$ points$)$

Quality Kitchen Company's $2026$ single$-$step income statement and comparative balance sheet are provided below:

QUALITY KITCHEN COMPANY

Income Statement

Year Ended December $31,2026$

Revenue

Expenses

Cost of goods sold

$$920,000$

Salaries

$$493,500$

Other operating expense

$189,000$

Depreciation expense

$73,500$

$25,000$

Interest

$13,000$

Income taxes

Profit. $q,$

QUALITY KITCHEN COMPANY Balance Sheet December $31$

Cash Assets

Accounts receivable $q,$

Inventory $q,$

Prepaid expenses $q,$

Land $q,$

Building and equipment $-$ cost$.$

Accumulated depreciation $q,$

Total assets $q,$

Liabilities and Shareholders' Equity

Additional information:

No new long$-$term debt was taken during the year.

New equipment was purchased, and none was sold.

Common shares were issued for cash.

Cash dividends were paid to common shareholders.

All operating expenses were paid in the period incurred.

Required: Prepare the cash flow statement for $2026,$ using the direct method.