Problem 23-02 The comparative balance sheets for Sage Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents December 31 2020 2019 $33,600 $13,100 12,100 10,100 11,900 9,000 -0 3,100 -0- 29,800 45,500 20,100 5,000 6,200 $108,100 $91,400 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 $3,100 2,000 -0- 5,000 -0- 3,100 31,000 43,000 20,900 $108,100 $4,400 4,600 6,100 3,100 4,900 4,100 25,000 33,000 6,200 $91,400 Additional data related to 2020 are as follows. 1. Equipment that had cost $10,800 and was 40% depreciated at time of disposal was sold for $2,600. 2. $10,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $4,900. 4. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,000 taxes). 5. Debt 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 $6,600 were paid in cash. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SAGE CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Adjustments to reconcile net income to V V Supplemental disclosures of cash flow information: $ $