Problem 23-02 The comparative balance sheets for Flint Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents December 31 2020 2019 $33,600 $13,100 12,100 10,000 12,100 9,000 -0 3,100 -0 29,400 45,000 20,200 4,900 6,300 $107,700 $91,100 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 $3,100 2,000 -0- 4,900 -0- 3,000 31,000 43,000 20,700 $107,700 $4,500 4,500 5,900 3,100 5,000 4,100 25,000 33,000 6,000 $91,100 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 $29,900 (net of $2,000 taxes). 5. Debt investments (available-for-sale) were sold at $1,800 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 $2,100 and income taxes of $6,500 were paid in cash. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) FLINT CORPORATION Statement of Cash Flows Adjustments to reconcile net income to Proceeds from Flood Damage to Building Proceeds from Flood Damage to Building Gain on Sale of Investments Increase in Accounts Payable Retired Notes Payable by Issuing Common Stock Payment of Dividends Decrease in Inventory Gain from Flood Damage Sale of Investments Increase in Accounts Receivable (Net) Purchased Equipment by Issuing Notes Payable Decrease in Accounts Payable Sale of Equipment Depreciation Expense Payment of Short-term Note Payable Loss on Sale of Equipment Purchase of Equipment Net Income Decrease in Accounts Receivable (Net) Gain on Sale of Equipment Loss from Flood Damage Patent Amortization Loss on Sale of Investments Increase in Inventory Proceeds from Flood Damage to Building Proceeds from Flood Damage to Building Gain on Sale of Investments Increase in Accounts Payable Retired Notes Payable by Issuing Commons Payment of Dividends Decrease in Inventory Gain from Flood Damage Sale of Investments Increase in Accounts Receivable (Net) Purchased Equipment by Issuing Notes Paya Decrease in Accounts Payable Sale of Equipment Depreciation Expense Payment of Short-term Note Payable Loss on Sale of Equipment Purchase of Equipment Net Income Decrease in Accounts Receivable (Net) Gain on Sale of Equipment Loss from Flood Damage Patent Amortization Loss on Sale of Investments Increase in Inventory Supplemental disclosures of cash flow information: Proceeds from Flood Damage to Building Proceeds from Flood Damage to Building Gain on Sale of Investments Increase in Accounts Payable Retired Notes Payable by Issuing Common Stock Payment of Dividends Decrease in Inventory Gain from Flood Damage Sale of Investments Increase in Accounts Receivable (Net) Purchased Equipment by Issuing Notes Payable Decrease in Accounts Payable Sale of Equipment Depreciation Expense Payment of Short-term Note Payable Loss on Sale of Equipment Purchase of Equipment Net Income Decrease in Accounts Receivable (Net) Gain on Sale of Equipment Loss from Flood Damage Retired Notes Payable by Issuing Common Stock Payment of Dividends Decrease in Inventory Gain from Flood Damage Sale of Investments Increase in Accounts Receivable (Net) Purchased Equipment by Issuing Notes Payable Decrease in Accounts Payable Sale of Equipment Depreciation Expense Payment of Short-term Note Payable Loss on Sale of Equipment Purchase of Equipment Net Income Decrease in Accounts Receivable (Net) Gain on Sale of Equipment Loss from Flood Damage Patent Amortization Loss on Sale of Investments Increase in Inventory