Problem 23-2 The comparative balance sheets for Flounder Corporation show the following information December 31 2017 2016 Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents $33,700 $13,200 9,900 9,100 3,000 30,000 44,600 20,200 6,400 $107,900 $91,800 12,300 12,200 5,100 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 $4,600 4,400 5,900 3,000 4,900 4,100 31,000 25,000 43,000 33,000 6,900 $107,900 $91,800 2,000 5,100 2,900 20,800 Additional data related to 2017 are as follows 1. Equipment that had cost $11,100 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 $4,900. 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. Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country. (Show amounts that decrease cash flow with either a - sign e.g.-15,00 in parenthesis e.g. (15,0oo) FLOUNDER CORPORATION Statement of Cash Flows Adjustments to reconcile net income to Supplemental disclosures of cash flow information