The comparative balance sheets for Larkspur Corporation show thefollowing information.
| | December 31 |
| | 2017 | | 2016 |
| Cash | | $33,700 | | $13,200 |
| Accounts receivable | | 12,100 | | 9,900 |
| Inventory | | 12,000 | | 9,100 |
| Available-for-sale debtinvestments | | –0– | | 3,000 |
| Buildings | | –0– | | 29,500 |
| Equipment | | 45,000 | | 19,800 |
| Patents | | 5,000 | | 6,100 |
| | $107,800 | | $90,600 |
| | | | |
| Allowance for doubtfulaccounts | | $3,100 | | $4,500 |
| Accumulateddepreciation—equipment | | 2,000 | | 4,500 |
| Accumulateddepreciation—building | | –0– | | 6,100 |
| Accounts payable | | 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 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 notepayable was paid by issuing common stock. |
| 3. | | Cash dividends paid were$4,900. |
| 4. | | On January 1, 2017, thebuilding was completely destroyed by a flood. Insurance proceeds onthe building were $30,200 (net of $2,100 taxes). |
| 5. | | Investments(available-for-sale) were sold at $1,800 above their cost. Thecompany has made similar sales and investments in the past. |
| 6. | | Cash was paid for theacquisition of equipment. |
| 7. | | A long-term note for $16,000was issued for the acquisition of equipment. |
| 8. | | Interest of $2,000 and incometaxes of $6,400 were paid in cash. |
Prepare a statement of cash flows using the indirect method. Flooddamage is unusual and infrequent in that part of the country.
