Dingel Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information.

Additional data related to 2020 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 notes payable was paid by issuing ordinary shares.

3. Cash dividends paid were $5,000.

4. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $32,000.

5. Equity investments (non-trading) 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 2020 2019 $ -0- Buildings Equipment $29,750 45,000 20,000 Patents 5,000 6,250 Investments -0- 3,000 Inventory 12,000 9,000 Accounts receivable 12,250 10,000 Cash 33,500 13,000 $107,750 $91,000 $ 43,000 Share capital-ordinary Retained earnings $33,000 20,750 6,000 Allowance for doubtful accounts 3,000 4,500 Accumulated depreciation on equipment Accumulated depreciation on buildings Accounts payable Dividends payable Long-term notes payable Notes payable, short-term (non-trade) 2,000 4,500 -0- 6,000 5,000 3,000 5,000 -0- 31,000 25,000 3,000 4,000 $107,750 $91,000