Problem 23-9

Sunland Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information.

		December 31
		2017		2016
Cash		$38,900		$12,800
Accounts receivable		12,200		9,900
Inventory		11,800		10,000
Equity investments		0		3,100
Buildings		0		29,600
Equipment		40,400		20,200
Copyrights		5,000		5,200
Totals		$108,300		$90,800
Allowance for doubtful accounts		$3,000		$4,600
Accumulated depreciationequipment		2,000		4,500
Accumulated depreciationbuildings		0		5,900
Accounts payable		5,000		4,000
Dividends payable		0		4,900
Notes payable, short-term (nontrade)		3,000		4,000
Long-term notes payable		36,000		25,000
Common stock		38,000		33,000
Retained earnings		21,300		4,900
		$108,300		$90,800

Additional data related to 2017 are as follows.

1.		Equipment that had cost $10,900 and was 30% depreciated at time of disposal was sold for $2,500.
2.		$5,000 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 $32,800 (net of $4,000 taxes).
5.		Equity investments (ownership is less than 20% of total shares) were sold at $1,600 above their cost. No unrealized gains or losses were recorded in 2017.
6.		Cash and long-term note for $16,000 were given for the acquisition of equipment.
7.		Interest of $1,900 and income taxes of $5,000 were paid in cash.

(a) Use the indirect method to analyze the above information and prepare a statement of cash flows for Sunland. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)