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

December 31

2017

2016

Cash$38,500

$12,900

Accounts receivable12,300

10,100

Inventory12,100

10,000

Equity investments-0-

2,900

Buildings-0-

29,700

Equipment40,300

19,900

Copyrights4,900

5,300

Totals$108,100

$90,800

Allowance for doubtful accounts$3,000

$4,600

Accumulated depreciationequipment2,100

4,500

Accumulated depreciationbuildings-0-

6,000

Accounts payable4,900

4,000

Dividends payable-0-

5,000

Notes payable, short-term (nontrade)3,100

4,000

Long-term notes payable36,000

25,000

Common stock38,000 33,000

Retained earnings21,000

4,700

$108,100

$90,800

Additional data related to 2017 are as follows.

1.Equipment that had cost $11,100 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 $5,000.4.On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $32,700 (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 $2,000 and income taxes of $5,000 were paid in cash.

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