Problem 23-2

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

		December 31
		2017		2016
Cash		$33,300		$13,000
Accounts receivable		12,400		9,900
Inventory		12,000		8,900
Available-for-sale debt investments		0		3,000
Buildings		0		29,600
Equipment		45,200		19,800
Patents		5,000		6,100
		$107,900		$90,300
Allowance for doubtful accounts		$3,000		$4,600
Accumulated depreciationequipment		2,000		4,500
Accumulated depreciationbuilding		0		6,100
Accounts payable		5,000		3,000
Dividends payable		0		5,000
Notes payable, short-term (nontrade)		2,900		4,100
Long-term notes payable		31,000		25,000
Common stock		43,000		33,000
Retained earnings		21,000		5,000
		$107,900		$90,300

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).)