Hi,

Please help with the attached question for Intermediate Accounting III, Unit 9, Statement of Cash Flows.

Thanks,

K

Problem 23-2 The comparative balance sheets for Hinckley Corporation show the following information. December 31 Cash Accounts receivable Inventory Investments Buildings Equipment Patents Allowance for doubtful accounts Accumulated depreciationequipment Accumulated depreciationbuilding Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 2014 2013 $36,050 18,570 15,910 -0- -0- 51,080 5,640 $14,930 10,790 9,840 3,270 30,400 20,080 7,100 $127,250 $96,410 $3,190 2,110 -0- 5,640 -0- 2,980 31,180 43,530 38,620 $5,020 5,300 6,880 3,270 4,100 3,900 25,270 33,990 8,680 $127,250 $96,410 Additional data related to 2014 are as follows. 1 . 2 . 3 Equipment that had cost $11,200 and was 40% depreciated at time of disposal was sold for $3,230. $9,540 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $4,100. . 4 . 5 . 6 . 7 . 8 . On January 1, 2014, the building was completely destroyed by a flood. Insurance proceeds on the building were $31,590 (net of $2,940 taxes). Investments (available-for-sale) were sold at $1,640 above their cost. The company has made similar sales and investments in the past. Cash was paid for the acquisition of equipment. A long-term note for $15,450 was issued for the acquisition of equipment. Interest of $2,660 and income taxes of $8,340 were paid in cash. Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) HINCKLEY CORPORATION Statement of Cash Flows For the Year Ended December 31, 2014 $ Adjustments to reconcile net income to $ $ Supplemental disclosures of cash flow information: $ $ $ $ Don't show me this message again for the assignment