P22.2 (LO 2, 4) Excel Groupwork (SCF-Indirect Method) The comparative balance sheets for Hinckley Corporation show the following information. December 31 Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment. Patents Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 2025 $ 33,500 12,250 12,000 -0- -0- 45,000 5.000 $107,750 $ 3.000 2,000 -0- 5.000 -0- 3,000 31.000 43,000 20.750 $107,750 2024 $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 Additional data related to 2025 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, 2025, the building was completely destroyed by a flood. Insurance proceeds on the building were $30.000 (net of $2.000 taxes). 5. Debt 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.

Additional data related to 2025 are as follows. 1. Equiquent that had cost $11.000 abd wat 40% depreciated at time of disposal was sold for 52.500. 2. 510.000 af the longs-term 6ote payable wax juald by isswie coramon stock. B Custrdividents paid were 55,000 6. Cash was pala for the angugition of equipenent 7. A long terma note fur 516.000 was iasued for thie acquatition of equipment B. Interest af 52.000 and hisceme tames of 56.500 were pald in caxh