The following information relates to Pemberton Group for the year ended December 31, 2026.
| Item | Amount |
|---|
| Net income | $80,000 |
| Depreciation expense | 20,000 |
| Decrease in accounts receivable | 10,000 |
| Increase in inventory | 6,000 |
| Increase in accounts payable | 4,000 |
Additional information:
- Equipment was purchased for $50,000 cash.
- Long-term borrowings of $30,000 were taken out for cash.
- Cash dividends of $25,000 were paid to stockholders (a financing activity under US GAAP).
- Cash and cash equivalents were $22,000 at January 1, 2026.
Required: Prepare a statement of cash flows for 2026 using the indirect method.