Problem 23-2 (Statement of Cash Flows - Indirect Method) The comparative statements of financial position for Hinckley Corporation include the following information: Hinckley Corporation Comparative Statements of Financial Position As of December 31, 2019 and 2018 2019 Investments (Held-for-collection) SO Buildings 0 Equipment 45,000 Patents 5,000 Inventory 12,000 Accounts receivable 12,250 Cash 33,500 S107.750 Share capital - ordinary $43,000 Retained earnings 20,750 Allowance for doubtful accounts 3,000 Accumulated depreciation - equipment 2,000 Accumulated depreciation - buildings 0 Accounts payable 5,000 Dividend payable 0 Long-term notes payable 31,000 Note payable, short-term (non-trade) 3,000 S107.750 2018 $3,000 29,750 20,000 6,250 9,000 10,000 13,000 $91.000 $33,000 6,000 4,500 4,500 6,000 3,000 5,000 25,000 4,000 $91.000 Additional data related to 2019 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 ordinary shares. 3. Cash dividends paid were $5,000. 7 4. 5. 6. 7. 8. On January 1, 2019, the building was completely destroyed by a fire. Insurance proceeds on the building were $32,000. Equity investments were sold at $1,700 above their cost. Cash was paid for the acquisition of equipment. A long-term note for $16,000 was issued for the acquisition of equipment. Interest of $2,000 and income taxes of $6,500 were paid in cash. Instructions: Prepare a statement of cash flows for the year ended December 31, 2019, using the indirect method