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

Additional data related to 2008 are as follows.
1. Equipment that had cost $11,000 and was 30% 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, 2008, 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 $3,700 above their cost. The company has made similar sales and investments in the past.
6. Cash of $15,000 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. Flood damage is unusual and infrequent in that part of thecountry.

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December 31 2008 2007 Cash Accounts receivable Inventory Investments Building Equipment Patent $ 38,500 $13,000 10,000 9,000 3,000 29,750 20,000 6,250 $91,000 12,250 12,000 40,000 5,000 $107,750 3,000 2,000 Allowance for doubtful accounts Accumulated depreciation on equip Accumulated depreciation on buildi Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 4,500 4,500 6,000 3,000 5,000 4,000 25,000 33,000 6,000 $91,000 ment 5,000 3,000 31,000 43,000 20,750 $107,750