Additional data related to 2019 are as follows.

1. Equipment that had cost ?11,000 and was 40%depreciated at time ofdisposal was sold for ?2,500.
2. ?10,000ofthelong-termnotepayablewaspaidbyissuingordinaryshares.
3. Cash dividends paid were ?5,000.
4. On January 1, 2019, the building was completely destroyed by a flood. Insurance proceeds on the
5. building were ?32,000.
6. Equity investments were sold at ?1,700 above their cost.
7. Cash was paid for the acquisition of equipment.
8. A long-term note for ?16,000 was issued for the acquisition of equipment.
9. Interest of ?2,000 and income taxes of ?6,500 were paid in cash.

Instructions

Prepare a statement of cash flows using the indirect method (25%)

CASE 4. The comparative statements of financial position for Hinckley SA include the following information. December 31 2019 2018 Investments E - 0- E 3,000 Buildings -0- 29,750 Equipment 45,000 20,000 Patents 5,000 6,250 Inventory 12,000 9,000 Accounts receivable 12,250 10,000 Cash 33,500 13,000 (107,750 691,000 Share capital-ordinary E 43,000 33,000 Retained earnings 20,750 6,000 Allowance for doubtful accounts 3,000 4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-buildings -0- 6,000 Accounts payable 5,000 3,000 Dividends payable -0- 5,000 Long-term notes payable 31,000 25,000 Notes payable, short-term (non-trade) 3,000 4,000 (107,750 (91,000