The following information is available for Silverbrook Holdings for the year ended December 31, 2025.
| Item | Amount |
|---|
| Net income | $70,000 |
| Depreciation expense | 22,000 |
| Gain on sale of investments | 5,000 |
| Increase in accounts receivable | 9,000 |
| Increase in inventory | 4,000 |
| Increase in accounts payable | 6,000 |
Additional information:
- Long-term investments (carrying amount $20,000) were sold for $25,000 cash.
- New equipment was purchased for $48,000 cash.
- Long-term borrowings of $20,000 were taken out for cash.
- Cash dividends of $18,000 were paid.
- Cash was $26,000 at January 1, 2025.
Required: Prepare a statement of cash flows using the indirect method (IAS 7). The gain on sale is deducted in operating activities; the $25,000 proceeds appear in investing.