The income statement, balance sheets, and additional information for Cloud Mangu are provided. Net sales Expenses: CLOUD MANGU Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $ 2,050,000 878,000 29,000 8,200 16,000 50,000 $ 3,136,000 3,031,200 $ 104,800 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment CLOUD MANGU Balance Sheets December 31 2024 2023 $ 179,720 83,200 105,000 $ 160,760 62,000 137,000 12,480 6,240 107,000 212,000 244,000 274,000 212,000 (71,400) Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable $ 902,000 (42,400) $ 779,600 $ 67,800 6,200 $ 83,000 10,400 Income tax payable 15,200 14,200 Long-term liabilities: Notes payable 289,000 227,000 Stockholders' equity: Common stock 320,000 320,000 Retained earnings 203,800 125,000 Total liabilities and stockholders' equity $ 902,000 $ 779,600 Additional Information for 2024: 1. Purchased investment in bonds for $107,000. 2. Sold land for $23,800. The land originally was purchased for $32,000, resulting in a $8,200 loss being recorded at the time of the sale. 3. Purchased $62,000 in equipment by issuing a $62,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $26,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. Note: Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign. Cash Flows from Operating Activities: CLOUD MANGU Statement of Cash Flows For the Year Ended December 31, 2024 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities