Cash December 31 2017 2016 Accounts receivable Inventory 12.000 Available-for-sale debt investments Buildings Equipment Patents 3.00...

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Cash December 31 2017 2016 Accounts receivable Inventory 12.000 Available-for-sale debt investments Buildings Equipment Patents 3.00 Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontracte) Long-beren notes payukle Common stock 5000 Retained earnings Additional data related to 2017 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciabad at time of disposal was sold for $2,500. 2. $10,000 of the long-term note payable was paid by bwding common stock. 3. Cash dividends paid were $5,000. 4. On January 1, 2017, 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. Instructions Prepare a statement of cash flows using the indirect method. Hood damage is unusual and infrequent in that part of the country. Cash December 31 2017 2016 Accounts receivable Inventory 12.000 Available-for-sale debt investments Buildings Equipment Patents 3.00 Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontracte) Long-beren notes payukle Common stock 5000 Retained earnings Additional data related to 2017 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciabad at time of disposal was sold for $2,500. 2. $10,000 of the long-term note payable was paid by bwding common stock. 3. Cash dividends paid were $5,000. 4. On January 1, 2017, 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. Instructions Prepare a statement of cash flows using the indirect method. Hood damage is unusual and infrequent in that part of the country.