The three accounts shown below appear in the general ledger of herrick Corp during 2017.

Equipment

Date Debit Credit Balance

Jan 1 Balance 160,000

July 31 Purchase of equipment 70,000 230,000

Sept 2 Cash of equipment constructed 53,000 283,000

Nov 10 Cost of equipment sold 49,000 234,000

Accumulated Depreciationequipment

Date Debit Credit Balance

Jan 1 Balance 71,000

Nov 10 Accumulated depreciation on 30,000 41,000

equipment sold

Dec 31 Depreciation for year 28,000 69,000

Retained Earnings

debit Credit Balance

Date

Jan 1 Balance 105,000

Aug 23 Dividends (cash) 14,000 91,000

Dec 31 Net Income 77,000 168,000

Instructions

From the Postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on disposal of equipment was $7,000 (hint. Cost of equipment constructed in reported in the investing activities section as decrease in cash of $53,000