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

Problem 23-2 Page 1 of 3 Print by: Kelly Casebier AC302: Intermediate Accounting III - 1602B-01 / AC302 Unit 9 HW Assignment *Problem 23-2 The comparative balance sheets for Hinckley Corporation show the following information. December 31 Cash 2014 2013 $36,580 $14,620 Accounts receivable 15,130 11,200 Inventory 18,550 9,400 -0- 3,280 -0- 30,380 50,650 22,560 Investments Buildings Equipment Patents Allowance for doubtful accounts Accumulated depreciationequipment Accumulated depreciationbuilding Accounts payable Dividends payable 5,300 7,210 $126,210 $98,650 $3,160 $4,690 2,560 4,980 -0- 6,380 5,300 3,280 -0- 4,390 2,710 3,800 Long-term notes payable 31,070 25,050 Common stock 43,850 33,830 Notes payable, short-term (nontrade) Retained earnings 37,560 12,250 $126,210 $98,650 Additional data related to 2014 are as follows. 1. 2. 3. 4. 5. 6. 7. 8. Equipment that had cost $10,820 and was 40% depreciated at time of disposal was sold for $3,630. $10,020 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $4,390. On January 1, 2014, the building was completely destroyed by a flood. Insurance proceeds on the building were $32,480 (net of $3,370 taxes). Investments (available-for-sale) were sold at $1,440 above their cost. The company has made similar sales and investments in the past. Cash was paid for the acquisition of equipment. A long-term note for $16,040 was issued for the acquisition of equipment. Interest of $2,400 and income taxes of $7,980 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).) HINCKLEY CORPORATION Statement of Cash Flows For the Year Ended December 31, 2014 Cash Flows from Opera Net Income http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni $ 5/27/2016 Problem 23-2 Page 2 of 3 Adjustments to reconcile net income to Cash Flows from Opera Loss on Sale of Equipm $ Gain from Flood Damag Depreciation Expense Patent Amortization Gain on Sale of Investm Increase in Accounts Re Increase in Inventory Increase in Accounts Pa Net Cash Provided by O $ Supplemental disclosures of cash flow information: $ http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 5/27/2016 Problem 23-2 Page 3 of 3 $ $ $ Question Attempts: 0 of 3 used Copyright 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 5/27/2016