Reference no: EM132733699

Question - Sweet Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Additional data related to 2017 are as follows.

1. Equipment that had cost $11,100 and was 30% depreciated at time of disposal was sold for $2,500.

2. $5,000 of the long-term note payable was paid by issuing common stock.

3. Cash dividends paid were $5,000.

4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $32,700 (net of $4,000 taxes).

5. Equity investments (ownership is less than 20% of total shares) were sold at $1,600 above their cost. No unrealized gains or losses were recorded in 2017.

6. Cash and long-term note for $16,000 were given for the acquisition of equipment.

7. Interest of $2,000 and income taxes of $5,000 were paid in cash.

Use the indirect method to analyze the above information and prepare a statement of cash flows for Sweet.