Use the Indirect method to create the Statement of Cash Flows

The comparative balance sheets for Ivanhoe Corporation show the following information. December 31 Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents 2020 2019 $33,700 $13,000 12,200 10,100 11,900 9,100 -O- 3,000 -O- 29,500 44,700 20,000 5,100 6,200 $107,600 $90,900 Allowance for doubtful accounts Accumulated depreciation equipment Accumulated depreciation-building Accounts payable Dividends payable $3,000 $4,500 2,000 4,600 -0 5,900 5,100 3,000 . -O 4,900 3,100 4,000 31,000 25,000 43,000 33,000 20,400 6,000 $107,600 $90,900 Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 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 $2,500. 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 $1,700 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment. 7. Along-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $2,000 and income taxes of $6,400 were paid in cash. IVANHOE CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ Adjustments to reconcile net income to $ CA Supplemental disclosures of cash flow information: 1