Problem 23-2 The comparative balance sheets for Blossom Corporation show the following information. December 31 2017 2016 Cash Accounts receivable $33,300 12,400 12,000 -0- Inventory Available-for-sale debt investments Buildings Equipment $13,000 9,900 8,900 3,000 29,600 19,800 6,100 $90,300 -0- 45,200 5,000 Patents $107,900 Allowance for doubtful accounts $3,000 2,000 $4,600 4,500 -0- 6,100 5,000 Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock -0- 2,900 31,000 43,000 21,000 $107,900 3,000 5,000 4,100 25,000 33,000 5,000 $90,300 Retained earnings Additional data related to 2017 are as follows. 1. Equipment that had cost $10,900 and was 40% depreciated at time of disposal was sold for $2,400. 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, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,700 (net of $2,000 taxes). 5. Investments (available-for-sale) were sold at $1,600 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 $1,900 and income taxes of $6,500 were paid in cash. Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLOSSOM CORPORATION Statement of Cash Flows $ Adjustments to reconcile net income to 4 - - - - - Supplemental disclosures of cash flow information