Problem 23-02 The comparative balance sheets for Sheridan Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents December 31 2020 2019 $33,700 $13,200 12,300 9,900 12,200 9,100 -0 3,000 -0 30,000 44,600 20,200 5,100 6,400 $107,900 $91,800 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- 5,100 -0 2,900 31,000 43,000 20,800 $107,900 $4,600 4,400 5,900 3,000 4,900 4,100 25,000 33,000 6,900 $91,800 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,100 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 $4,900. 4. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,000 (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 $6,500 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).) SHERIDAN CORPORATION Statement of Cash Flows Adjustments to reconcile net income to Supplemental disclosures of cash flow information: s