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P$114$ provided.The income statement, balance sheets, and additional information for Cloud Mangu areLO$112,113,$Page $616$CLOUD MANGUIncome StatementFor the year ended December $31,2026$Net sales Expenses:Cost of goods sold $$2,450,000$Operating expenses $958,000$Depreciation expense $37,000$Loss on sale of land $9,000$Interest expense $20,000$Income tax expense $58,000$Total expenses Net income $$3,636,0003,532,000$$ $104,000$CLOUD MANGUBalance SheetsDecember $3120262025$AssetsCurrent assets:Cash $ $254,600$ $$227,800$Accounts receivable $92,00070,000$Inventory $105,000145,000$Prepaid rent $14,4007,200$Long$-$term assets:Investments $115,0000$Land $220,000260,000$Equipment $290,000220,000$Accumulated depreciation $(81,000)(44,000)$Total assets $$1,010,000$ $$886,000$Liabilities and Stockholders EquityCurrent liabilities:Accounts payable $$75,000$ $$91,000$Interest payable $7,00012,000$Income tax payable $16,00015,000$Long$-$term liabilities:Notes payable $305,000235,000$Stockholders equity:Common stock $400,000400,000$Retained earnings $207,000133,000$Total liabilities and stockholders equity $$1,010,000$ $$886,000$Additional Information for $2026$:$1.$ Purchased investment in bonds for $$115,000\mathrm{.}2.$ Sold land for $$31,000.$ The land originally was purchased for $$40,000,$ resulting in a$$9,000$ loss being recorded at the time of the sale$\mathrm{.}3.$ Purchased $$70,000$ in equipment by issuing a $$70,000$ long$-$term note payable to theseller. No cash was exchanged in the transaction$\mathrm{.}4.$ Declared and paid a cash dividend of $$30,000.$

Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note.

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