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

Additional data related to 2010 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 $5,000.

4. On January 1, 2010, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,000 (net of $2,000 taxes).

5. 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. 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.

Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of thecountry.

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Cash Accounts receivable Inventory Investments Building Equipment Patent Allowance for doubtful accounts Accumulated depreciation on equipment Accumulated depreciation on building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings December 31 2010 $ 33,500 12,250 12,000 - -0- 45,000 5,000 $107.750 $ 3,000 2,000 -0- 5,000 3,000 31,000 43,000 20,750 $107.750 2009 $13,000 10,000 9,000 3,000 29,750 20,000 6,250 $91.000 $4,500 4,500 6.000 3,000 5,000 4.000 25,000 33,000 6,000 $91.000