The comparative statements of financial position for Hinckley SA include the following information. December Investments Buildings Equipment Patents Inventory Accounts receivable Cash 2019 -0- -0- 45,000 5,000 12,000 12,250 33,500 107,750 43,000 20,750 3,000 2,000 2018 3,000 29,750 20,000 6,250 9,000 10,000 13,000 91,000 31,000 6,000 4,500 4,500 Share capital-ordinary Retained earnings Allowance for doubtful accounts Accumulated for depreciation- equipment Accumulated depreciation-buildings Accounts payable Dividends payable Long-term notes payable Notes payable, short-term (non-trade) ! -0- 5,000 -0- 31,000 3,000 107,750 6,000 3,000 5,000 25,000 4,000 91,000 Additional data related to 2019 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 ordinary shares. 3. Cash dividends paid were 5,000. 4. On January 1, 2019, the building was completely destroyed by a flood. Insurance proceeds on the building were 32,000. 5. Equity investments were sold at 1,700 above their cost. 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 2,000 and income taxes of 6,500 were paid in cash. Instructions Prepare a statement of cash flows using the indirect method (25%)