P23-2 (L02,4) EXCEL GROUPWORK (SCF-Indirect Method) The comparative balance sheets for Hinckley Corporation show the following information. December 31 2016 2017 $ 33,500 $13,000 10,000 9,000 3,000 29,750 20,000 Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents 12.250 12,000 -0- 0- 45,000 vOT 5,000 6.250 $107,750 $91,000 s 3,000 S 4,500 Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 2,000 0- 5,000 -0 3,000 31,000 43,000 20,750 4,500 6,000 3,000 5,000 4,000 25,000 33,000 6,000 t $91,000 $107,750 Additional data related to 2017 are as follows. 1. Equipment that had cost $11,000 and was 40 % depreciated 2. $10,000 of the long-term note payable at time of disposal was sold for $2,500, was paid by issuing common stock. 3. Cash dividends paid were $5,000. completely destroyed by a flood. Insurance proceeds on the building 4. On January 1, 2017, the building was (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 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 were $30,000 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