P23.2 (LO 2, 4) (SCFIndirect Method) The comparative balance sheets for Hinckley Corporation show the following information. December 31 2020 2019 Cash $ 33.500 12,250 12,000 -0- Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents $13.00 0 10,000 9,000 3,000 29.750 20,000 6,250 $91,00 45,000 5.000 $107.750 Allowance for doubtful accounts $ 3.00 $ 4.50 0 O 2.000 4.500 5,000 Accumulated depreciation- equipment Accumulated depreciation--building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 3.000 31,000 43,000 20,750 $107.750 6,000 3.000 5.000 4,000 25.000 33.000 6,000 $91,00 0 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 note payable was paid by issuing common stock 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 $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. Instructions Prepare a statement of cash flows using the indirect method