The comparative balance sheets for Hinckley Corporation show the following information. December 31 2017 2016 S13,000...

 

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The comparative balance sheets for Hinckley Corporation show the following information. December 31 2017 2016 S13,000 10,000 9,000 3,000 29,750 20,000 6,250 Cash Accounts receivable S 33,500 12,250 12,000 -0- Inventory Available-for-sale debt investments Buildings Equipment Patents -0- ORS 45,000 5,000 $107.750 $91,000 $ 3,000 2,000 -0- $ 4,500 4,500 6,000 3,000 5,000 4,000 25,000 33,000 6,000 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 5,000 3,000 31,000 43,000 20,750 $107,750 $91,000 Additional data related to 2017 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, 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. Flood damage is unusual and infrequent in that part of the country. The comparative balance sheets for Hinckley Corporation show the following information. December 31 2017 2016 S13,000 10,000 9,000 3,000 29,750 20,000 6,250 Cash Accounts receivable S 33,500 12,250 12,000 -0- Inventory Available-for-sale debt investments Buildings Equipment Patents -0- ORS 45,000 5,000 $107.750 $91,000 $ 3,000 2,000 -0- $ 4,500 4,500 6,000 3,000 5,000 4,000 25,000 33,000 6,000 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 5,000 3,000 31,000 43,000 20,750 $107,750 $91,000 Additional data related to 2017 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, 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. Flood damage is unusual and infrequent in that part of the country.

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Hinckley corporation Statement of Cash flows For the Year Ended December 31 2017 Cash flows from ope... View the full answer