P23-2 (LO2,4) SCFIndirect Method
The comparative balance sheets for Hinckley Corporation show the following information.
					December 31
					2017	2016	Difference
	Cash				$ 33,500	$ 13,000	20,500
	Accounts receivable				12,250	10,000	2,250
	Inventory				12,000	9,000	3,000
	Available-for-sales debt investments				-	3,000	(3,000)
	Buildings				-	29,750	(29,750)
	Equipment				45,000	20,000	25,000
	Patents				5,000	6,250	(1,250)
	Totals				$ 107,750	$ 91,000	16,750
							-
	Allowance for doubtful accounts				$ 3,000	$ 4,500	(1,500)
	Accumulated depreciation - equipment				2,000	4,500	(2,500)
	Accumulated depreciation - buildings				-	6,000	(6,000)
	Accounts payable				5,000	3,000	2,000
	Dividends payable				-	5,000	(5,000)
	Notes payable, short-term (nontrade)				3,000	4,000	(1,000)
	Long-term notes payable				31,000	25,000	6,000
	Common stock				43,000	33,000	10,000
	Retained earnings				20,750	6,000	14,750
	Totals				$ 107,750	$ 91,000	16,750
Additional data related to 2017 are as follows:
	1.	Equipment was sold.
			Selling price of equipment				$ 2,500
			Portion depreciated at time of sale				40%
			Cost of equipment sold				$ 11,000
	2.	Portion of long-term note payable paid by issuing common stock.					$ 10,000
	3.	Cash dividends paid					$ 5,000
	4.	On January 1, 2017, the building was completely destroyed by a flood.
			Insurance proceeds received (net of tax)				$ 30,000
			Amount of taxes deducted from proceeds				2,000
	5.	Investments (available-for-sale) were sold.
			Sales price above cost				$ 1,700
		The company has made similar sales and investments in the past.
	6.	Cash of was paid for the acquisition of equipment.
	7.	Long-term note was issued for the acquisition of equipment.					$ 16,000
	8.	Amounts paid in cash
			Interest				$ 2,000
			Income taxes				6,500
Instructions:
Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country.