The following information was taken from the records of Silvergate Products for the year ended December 31, 2025.

Additional information:

Accounts receivable increased by $12,000 during the year.
Inventory increased by $7,000 and accounts payable increased by $5,000.
Salaries and wages payable increased by $2,000.
Prepaid rent decreased by $1,500 and prepaid insurance increased by $800.
Interest of $5,000 was paid in cash. Income taxes payable increased by $3,000.
Equipment was purchased for $30,000 cash. Borrowings of $10,000 were received in cash, and cash dividends of $15,000 were paid.
Cash and cash equivalents were $24,300 at January 1, 2025.

Instructions:

Prepare a multi-step income statement for the year ended December 31, 2025.
Prepare a statement of cash flows for 2025 using the DIRECT method (IAS 7). In addition to the main statement, present a separate supporting schedule (working) for each of: Cash Received from Customers, Cash Paid to Suppliers, Cash Paid to Employees, and Cash Paid for Operating Expenses.

Cash Flow Statement — Integrated Capstones

1 Cash Flow Statement — Integrated Capstones practice challenge