I need help with the supplement disclosures of cash flow more than anything which is the second half of this assignment.

P23-2 (SCFIndirect Method) The comparative balance sheets for Hinckley Corporation show the following information.

December 31

2014

2013

Cash

$33,500

$13,000

Accounts receivable

12,250

10,000

Inventory

12,000

9,000

Investments

0

3,000

Building

0

29,750

Equipment

45,000

20,000

Patent

5,000

6,250

Totals

$107,750

$91,000

Allowance for doubtful accounts

$3,000

$4,500

Accumulated depreciation on equipment

2,000

4,500

Accumulated depreciation on building

0

6,000

Accounts payable

5,000

3,000

Dividends payable

0

5,000

Notes payable, short-term (nontrade)

3,000

4,000

Long-term notes payable

31,000

25,000

Common stock

43,000

33,000

Retained earnings

20,750

6,000

Totals

$107,750

$91,000

Additional data related to 2014 are as follows:

1. Equipment that had cost

$11,000

and was

40%

depreciated at time of

disposal was sold for

$2,500

2.

$10,000

of the long-term note payable was paid by issuing common stock.

3. Cash dividends paid were

$5,000

4. On January 1, 2014, the building was completely destroyed by a flood. Insurance proceeds on the

building were

$30,000

(net of

$2,000

taxes).

5. Investments (available-for-sale) were sold at

$1,700

above their cost. The

company has made similar sales and investments in the past.

6. Cash of was paid for the acquisition of equipment.

7. A long-term note for

$16,000

was issued for the acquisition of equipment.

8. 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. Flood damage is unusual and infrequent in that part of the country.

HINCKLEY CORPORATION

Statement of Cash Flows

For the Year Ended December 31, 2014

Cash flows from operating activities

Net income (a)

Amount

Adjustments to reconcile net income to net cash provided by operating activities:

Title

Amount

Title

Amount

Title

Amount

Title

Amount

Title

Amount

Title

Amount

Title

Amount

Title

Amount

Formula

Net cash provided by operating activities

Formula

Cash flows from investing activities

Title

Amount

Title

Amount

Title

Amount

Title

Amount

Net cash provided by investing activities

Formula

Cash flows from financing activities

Title

Amount

Title

Amount

Net cash used by financing activities

Formula

Increase in cash

Amount

Title

Amount

Title

Formula

Supplemental disclosures of cash flow information:

Cash paid during the year for:

Title

Amount

Title

Amount

Noncash investing and financing activities

Title

Amount

Title

Amount

Formula

Supporting Computations:

(a) Ending retained earnings

Amount

Title

Amount

Net income

Formula

(b) Cost

Amount

Title

Amount

Title

Formula

Title

Amount

Loss on sale

Formula

(c) Accumulated depreciation on equipment sold

Amount

Title

Amount

Title

Formula

(d) Beginning equipment balance

Amount

Title

Amount

Title

Formula

Title

Amount

Title

Formula

Title

Amount

Title

Formula