The income statement, balance sheets, and additional information for Cloud Mangu are provided.

CLOUD MANGUIncome StatementFor the Year Ended December $31,2026$

Net sales$$$ $3,536,000$

Expenses:$$

Cost of goods sold$ $2,350,000$

Operating expenses$938,000$

Depreciation expense$35,000$

Loss on sale of land$8,800$

Interest expense$19,000$

Income tax expense$56,000$

Total expenses$3,406,800$

Net income$$$ $129,200$

CLOUD MANGUBalance SheetDecember $312026$

$2025$

Assets$$

Current assets:$$Cash$ $260,880$$ $211,040$

Accounts receivable$89,800$

$68,000$

Inventory$105,000$

$143,000$

Prepaid rent$13,920$

$6,960$

Long$-$term assets:$$Investments$113,0000$

Land$218,000$

$256,000$

Equipment$286,000$

$218,000$

Accumulated depreciation$(78,600)(43,600)$

Total assets$ $1,008,000$$ $859,400$

Liabilities and Stockholders' Equity$$

Current liabilities:$$Accounts payable$ $73,200$$ $89,000$

Interest payable$6,800$

$11,600$

Income tax payable$15,800$

$14,800$

Long$-$term liabilities:$$

Notes payable$301,000$

$233,000$

Stockholders' equity:$$Common stock$380,000$

$380,000$

Retained earnings$231,200$

$131,000$

Total liabilities and stockholders$$ equity$ $1,008,000$$ $859,400$

Additional Information for $2026$:

Purchased investment in bonds for $$113,000.$

Sold land for $$29,200.$ The land originally was purchased for $$38,000,$ resulting in a $$8,800$ loss being recorded at the time of the sale.

Purchased $$68,000$ in equipment by issuing a $$68,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$29,000.$

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.