The comparative balance sheets for Stellar Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments. Buildings Equipment Patents: December 31 2020 2019 $33,300 $13,000 12,400 9,900 12,000 8,900 -0- 3,000 -0- 29,600 45,200 19,800 5,000 6,100 $107,900 $90,300 Allowance for doubtful accounts $3,000 $4,600 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-building -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 2020 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. 5. On January 1, 2020, the building was completely destroyed by a flood Insurance proceeds on the building were $29.700 (net of $2,000 taxes) 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 Cash Flows from Operating Activities Net Income STELLAR CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Adjustments to reconcile net income to Net Cash Provided by Operating Activities V Gain from Flood Damage Depreciation Expense Patent Amortization Loss on Sale of Equipment Gain on Sale of Investments Increase in Accounts Receivable (Net) Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Investments Sale of Equipment i Purchase of Equipment Proceeds from Flood Damage to Building Net Cash Provided by Investing Activities Cash Flows from Financing Activities Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Investments Sale of Equipment Purchase of Equipment Proceeds from Flood Damage to Building Net Cash Provided by Investing Activities Cash Flows from Financing Activities Payment of Short-term Note Payable Payment of Dividends Net Cash Used by Financing Activities Net Increase in Cash Cash January 1, 2020 Cash December 31.2020 Supplemental disclosures of cash flow information: