Please see attachment. Thank you. Would you be able to finish this by 11pm?

P23-2 (SCF-Indirect Method) The comparative balance sheets for Hinckley Corporation show the following information. Cash Accounts receivable Inventory Investments Building Equipment Patent Allowance for doubtful accounts Accumulated depreciation on equipment Accumulated depreciation on building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings December 2010 2009 $33,500 $13,000 12,250 10,000 12,000 9,000 0 3,000 0 29,750 45,000 20,000 5,000 6,250 $107,750 $91,000 $3,000 2,000 0 5,000 0 3,000 31,000 43,000 20,750 $107,750 $4,500 4,500 6,000 3,000 5,000 4,000 25,000 33,000 6,000 $91,000 Additional data related to 2010 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, 2010, the building was completely destroyed by a food. 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 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. Name: Problem: Course: Date: P23-2, Statement of Cash Flows - Indirect Method The comparative balance sheets for Hinckley Corporation show the following information: December 31 2010 2009 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 Accumulated depreciation on equipment Accumulated depreciation on building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings Totals $3,000 2,000 0 5,000 0 3,000 31,000 43,000 20,750 $107,750 $4,500 4,500 6,000 3,000 5,000 4,000 25,000 33,000 6,000 $91,000 Additional data related to 2010 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, 2010, 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, 2010 Cash flows from operating activities Net income (a) Adjustments to reconcile net income to net cash provided by operating activities: Loss on sale of equipment (b) Gain from flood damage Depreciation expense (c) Patent amortization Gain on sale of investments Increase in accounts receivable (net) Increase in inventory Increase in accounts payable Net cash provided by operating activities Amount Amount Amount Amount Amount Amount Amount Amount Amount Cash flows from investing activities Sale of investments Sale of equipment Purchase of equipment (d) Proceeds from flood damage to building Net cash provided by investing activities Amount Amount Amount Amount Cash flows from financing activities Payment of dividends Payment of short-term note payable Net cash used by financing activities Formula Formula Amount Amount Formula Formula Increase in cash Cash, January 1, 2010 Cash, December 31, 2010 Supplemental disclosures of cash flow information: Cash paid during the year for: Interest Income taxes: Noncash investing and financing activities Retired note payable by issuing common stock Purchased equipment by issuing note payable Amount Amount Formula Amount Amount Amount Amount Formula Supporting Computations: (a) Ending retained earnings Beginning retained earnings Net income Amount Amount Formula (b) Cost Accumulated depreciation Book value Proceeds from sale Loss on sale Amount Amount Formula Amount Formula (c) Accumulated depreciation on equipment sold Decrease in accumulated depreciation Depreciation expense Amount Amount Formula (d) Beginning equipment balance Cost of equipment sold Remaining balance Purchase of equipment with note Adjusted balance Ending equipment balance Purchased with cash Amount Amount Formula Amount Formula Amount Formula Problem 23-2, Page 1 of 1, 08/04/2012, 13:23:16 Name: Problem: Course: Date: P23-2, Statement of Cash Flows - Indirect Method The comparative balance sheets for Hinckley Corporation show the following information: December 31 2010 2009 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 Accumulated depreciation on equipment Accumulated depreciation on building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings Totals $3,000 2,000 0 5,000 0 3,000 31,000 43,000 20,750 $107,750 $4,500 4,500 6,000 3,000 5,000 4,000 25,000 33,000 6,000 $91,000 Additional data related to 2010 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, 2010, 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, 2010 Cash flows from operating activities Net income (a) Adjustments to reconcile net income to net cash provided by operating activities: Loss on sale of equipment (b) Gain from flood damage Depreciation expense (c) Patent amortization Gain on sale of investments Increase in accounts receivable (net) Increase in inventory Increase in accounts payable Net cash provided by operating activities Amount Amount Amount Amount Amount Amount Amount Amount Amount Cash flows from investing activities Sale of investments Sale of equipment Purchase of equipment (d) Proceeds from flood damage to building Net cash provided by investing activities Amount Amount Amount Amount Cash flows from financing activities Payment of dividends Payment of short-term note payable Net cash used by financing activities Formula Formula Amount Amount Formula Formula Increase in cash Cash, January 1, 2010 Cash, December 31, 2010 Supplemental disclosures of cash flow information: Cash paid during the year for: Interest Income taxes: Noncash investing and financing activities Retired note payable by issuing common stock Purchased equipment by issuing note payable Amount Amount Formula Amount Amount Amount Amount Formula Supporting Computations: (a) Ending retained earnings Beginning retained earnings Net income Amount Amount Formula (b) Cost Accumulated depreciation Book value Proceeds from sale Loss on sale Amount Amount Formula Amount Formula (c) Accumulated depreciation on equipment sold Decrease in accumulated depreciation Depreciation expense Amount Amount Formula (d) Beginning equipment balance Cost of equipment sold Remaining balance Purchase of equipment with note Adjusted balance Ending equipment balance Purchased with cash Amount Amount Formula Amount Formula Amount Formula Problem 23-2, Page 1 of 1, 08/04/2012, 13:23:16