Prepare a schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than those listed above affected the computation of 2020 net cash flow from operating activities.

1. 2) The comparative balance sheets for ABC Corporation show the following information.

December 31

2020 2019

Cash $33,500 $13,000

Accounts Receivable 12,250 10,000

Inventory 12,000 9,000

Available-for-sale debt investments -0- 3,000

Buildings -0- 29,750

Equipment 45,000 20,000

Patents 5,000 6,250

$107,750 $91,000

Allowance for doubtful accounts $3,000 $4,500

Accumulated depreciation-equipment 2,000 4,500

Accumulated depreciation-building -0- 6,000

Accounts payable 5,000 3,000

Dividends payable -0- 5,000

Notes payable, short-term(nontrade) 3,000 4,000

Long-term notes payable 31,000 25,000

Common stock 43,000 33,000

Retained earnings 20,750 6,000

$107,750 $91,000

Additional data related to 2020 are as follows.

1. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.
2. 2. $10,000 of the long-term note payable was paid by issuing common stock.
3. 3. Cash dividends paid were $5,000.
4. 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. 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. 6. Cash was paid for the acquisition of equipment.
7. 7. A long-term note for $16,000 was issued for the acquisition of equipment.
8. 8. Interest of $2,000 and income taxes of $6,500 were paid in cash.