Blue Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Additional data related to $2025$ are as follows.

Equipment that had cost $$11,100$ and was $30\%$ depreciated at time of disposal was sold for $$2,500.$

$$5,000$ of the long$-$term note payable was paid by issuing common stock.

Cash dividends paid were $$5,000.$

On January $1,2025,$ the building was completely destroyed by a flood. Insurance proceeds on the building were $$32,700($net

of $$4,000$ taxes$).$

Equity investments $($ownership is less than $20\%$ of total shares$)$ were sold at $$1,400$ above their cost. No unrealized gains or

losses were recorded in $2025.$ Cash of $$15,100$ and a long$-$term note for $$16,000$ were given for the acquisition of equipment.

Interest of $$2,000$ and income taxes of $$5,000$ were paid in cash.

$($a$)$ Use the indirect method to analyze the above information and prepare a statement of cash flows for Blue. $($Show amounts that

decrease cash flow with either $a-$ sign e$.$g$.-15,000$ or in parenthesis e$.$g$.).)$

BLUE CORPORATION

Statement of Cash Flows

Adjustments to reconcile net income to$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$ $$

Allowance for doubtful accounts

Accumulated depreciation$-$equipment

Accumulated depreciation$-$buildings

$-0-,5,900$