The following information is available for Summit Logistics for the year ended December 31, 2026.
| Item | Amount |
|---|
| Net income | $60,000 |
| Depreciation expense | 15,000 |
| Increase in accounts receivable | 8,000 |
| Decrease in inventory | 5,000 |
| Increase in accounts payable | 3,000 |
Additional information:
- Equipment was purchased for $40,000 cash.
- A note payable was issued for $20,000 cash.
- Cash dividends of $18,000 were paid to stockholders.
- Cash and cash equivalents were $20,000 at January 1, 2026.
Required: Prepare a statement of cash flows for 2026 using the indirect method. Under US GAAP, dividends paid are classified as a financing activity.