Problem 23-2

The comparative balance sheets for Blue Corporation show the following information.

		December 31
		2017		2016
Cash		$33,300		$12,900
Accounts receivable		12,200		10,000
Inventory		11,900		9,000
Available-for-sale debt investments		0		2,900
Buildings		0		29,800
Equipment		44,900		20,100
Patents		5,000		6,300
		$107,300		$91,000
Allowance for doubtful accounts		$3,000		$4,500
Accumulated depreciationequipment		2,000		4,400
Accumulated depreciationbuilding		0		6,000
Accounts payable		5,000		2,900
Dividends payable		0		4,900
Notes payable, short-term (nontrade)		3,000		4,000
Long-term notes payable		31,000		25,000
Common stock		43,000		33,000
Retained earnings		20,300		6,300
		$107,300		$91,000

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 $2,600.
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, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,100 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 $2,100 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).)