The comparative balance sheets for Sheffield Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale...

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The comparative balance sheets for Sheffield Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents December 31 2025 2024 $33,700 $13,200 12,100 9.900 12,000 9,100 -0- 3,000 -0- 29,500 45,000 19,800 5,000 6,100 $107,800 $90,600 Allowance for doubtful accounts $3,100 $4,500 Accumulated depreciation-equipment Accumulated depreciation-building 2,000 4,500 -0- 6,100 Accounts Davable 5.000 3,000 Dividends payable -0- 4,900 Notes payable, short-term (nontrade) 2,900 4,000 Long-term notes payable 31,000 25,000 Common stock 43,000 33,000 Retained earnings 20,800 5,600 $107,800 $90,600 Additional data related to 2025 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. 5. On January 1, 2025, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,200 (net of $2,100 taxes). 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 $2,000 and income taxes of $6,400 were paid in cash. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).) Cash Flows from Operating Activities Net Income SHEFFIELD CORPORATION Statement of Cash Flows For the Year Ended December 31, 2025 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Loss on Sale of Equipment Gain from Flood Damage Gain on Sale of Investments $ 4,1600 15,200 Depreciation Expense Increase in Inventory Increase in Accounts Receivable (Net) Increase in Accounts Payable Patent Amortization Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Equipment Sale of Equipment Proceeds from Flood Damage to Building v > 1,940 1,100 Sale of Investments Net Cash Provided by Investing Activities Cash Flows from Financing Activities 4,800 Payment of Short-term Note Payable (1,100) 4 Payment of Dividends (4.900) Net Cash Provided by Investing Activities Net Increase in Cash Cash, January 1, 2025 Cash, December 31, 2025 (6,000) Supplemental disclosures of cash flow information: Cash Paid During the Year for Interest Cash Paid During the Year for Income Taxes Noncash Investing and Financing Activities Retired Notes Payable by Issuing Common Stock Purchased Equipment by Issuing Notes Payable 2,000 6,400 10,000 16,000 26,000 The comparative balance sheets for Sheffield Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents December 31 2025 2024 $33,700 $13,200 12,100 9.900 12,000 9,100 -0- 3,000 -0- 29,500 45,000 19,800 5,000 6,100 $107,800 $90,600 Allowance for doubtful accounts $3,100 $4,500 Accumulated depreciation-equipment Accumulated depreciation-building 2,000 4,500 -0- 6,100 Accounts Davable 5.000 3,000 Dividends payable -0- 4,900 Notes payable, short-term (nontrade) 2,900 4,000 Long-term notes payable 31,000 25,000 Common stock 43,000 33,000 Retained earnings 20,800 5,600 $107,800 $90,600 Additional data related to 2025 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. 5. On January 1, 2025, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,200 (net of $2,100 taxes). 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 $2,000 and income taxes of $6,400 were paid in cash. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).) Cash Flows from Operating Activities Net Income SHEFFIELD CORPORATION Statement of Cash Flows For the Year Ended December 31, 2025 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Loss on Sale of Equipment Gain from Flood Damage Gain on Sale of Investments $ 4,1600 15,200 Depreciation Expense Increase in Inventory Increase in Accounts Receivable (Net) Increase in Accounts Payable Patent Amortization Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Equipment Sale of Equipment Proceeds from Flood Damage to Building v > 1,940 1,100 Sale of Investments Net Cash Provided by Investing Activities Cash Flows from Financing Activities 4,800 Payment of Short-term Note Payable (1,100) 4 Payment of Dividends (4.900) Net Cash Provided by Investing Activities Net Increase in Cash Cash, January 1, 2025 Cash, December 31, 2025 (6,000) Supplemental disclosures of cash flow information: Cash Paid During the Year for Interest Cash Paid During the Year for Income Taxes Noncash Investing and Financing Activities Retired Notes Payable by Issuing Common Stock Purchased Equipment by Issuing Notes Payable 2,000 6,400 10,000 16,000 26,000