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Problem 23-2 The comparative balance sheets for Nash Corporation show the following information. December 31 2017 2016 Cash $33,200 $13,000 Accounts receivable 12,200 10,100 Inventory

Problem 23-2

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

December 31

2017

2016

Cash

$33,200

$13,000

Accounts receivable

12,200

10,100

Inventory

12,100

8,900

Available-for-sale debt investments

0

2,900

Buildings

0

30,100

Equipment

45,300

20,200

Patents

5,000

6,300

$107,800

$91,500

Allowance for doubtful accounts

$3,000

$4,500

Accumulated depreciationequipment

2,000

4,500

Accumulated depreciationbuilding

0

6,000

Accounts payable

5,000

2,900

Dividends payable

0

5,000

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

20,800

6,600

$107,800

$91,500

Additional data related to 2017 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 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 $30,300 (net of $2,000 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 $2,000 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).)

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