The comparative statements of financial position for Hinckley Corporation include the information shown.

Additional data related to 2015 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, 2015, 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.

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December 31 2015 -0-3 2014 3,000 Investments Buildings Equipment Patents Inventory Accounts receivable Cash -0- 29,750 45,000 20,000 5,000 6,250 12,000 9,000 12,250 10,000 33,500 13,000 107,750 91,000 Share capital-ordinary 43,000 33,000 Retained earnings 20,750 6,000 Allowance for doubtful accounts 3,000 4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-buildings -0- 6,000 Accounts payable 5,000 3,000 Dividends payable -0- 5,000 Long-term notes payable 31,000 25,000 Notes payable, short-term (non-trade) 3,000 4,000 107,750 91,000