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The comparative balance sheets for Sarasota Corporation show the following information. December 31 2020 2019 Cash $33,400 $12,900 Accounts receivable 12,300 10,100 Inventory 12,000 9,000

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

December 31

2020

2019

Cash

$33,400

$12,900

Accounts receivable

12,300

10,100

Inventory

12,000

9,000

Available-for-sale debt investments

0

3,000

Buildings

0

29,600

Equipment

45,200

19,900

Patents

4,900

6,400

$107,800

$90,900

Allowance for doubtful accounts

$3,000

$4,600

Accumulated depreciationequipment

2,000

4,500

Accumulated depreciationbuilding

0

6,100

Accounts payable

4,900

3,000

Dividends payable

0

4,900

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

5,700

$107,800

$90,900

Additional data related to 2020 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 $4,900.
4. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,100 (net of $1,900 taxes).
5. Debt 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. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

SARASOTA CORPORATION Statement of Cash Flows

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