| A B C D E F G H 1 P23-2B (LO2,4) SCFIndirect Method 2 The comparative balance sheets for Queen Corporation show the following information. 3 Cash Accounts receivable Inventory Available-for-sales debt investments Buildings Equipment Patents Totals December 31 2020 2019 55,800 $ 19,000 56,000 51,000 81,600 84,000 42,000 180,000 195,000 120,000 25,000 30,000 $ 413,400 $ 526,000 Allowance for doubtful accounts Accumulated depreciation - equipment Accumulated depreciation - buildings Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings Totals $ 5,000 $ 4,500 45,000 20,000 46,000 76,000 74,000 6,000 12,000 10,000 6,000 50,000 260,000 68,000 50,000 153,400 53,500 $ 413,400 $ 526,000 Additional data related to 2020 are as follows: 1. Equipment that had cost $20,000 and was 60% depreciated at the time of disposal was sold for $2,000 2. Portion of long-term note payable paid by issuing common st $ 18,000 3. Cash dividends paid $ 12,000 4 On January 1, 2020, the building was completely destroyed by a hurricane. Insurance proceeds received (net of tax) Amount of taxes deducted from proceeds $ 245,000 22,000 5. Investments (available-for-sale) were sold at $2,800 below cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment. 7. Long-term note was issued for the acquisition of equipment. $ 20,000 8 Amounts paid in cash Interest Income taxes $ 1,000 23,600 Instructions: Prepare a statement of cash flows using the indirect method. Hurricane damage is unusual and infrequent in that part of the country. Supplemental disclosures of cash flow information: Noncash investing and financing activities Calculation of net income: Calculation of loss on sale: Calculation of depreciation expense: Calculation of equipment purchased for cash