The following accounts appear in the ledger of Popovich Company.

InstructionsFrom the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of equipment (November 15) was $5,800.

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Retained Earnings Bal. Dr. Cr. $ 42,000 Jan. Credit Balance Dividends (cash) Net Income for 2012 1, 2012 Aug. 15 Dec. 31 $15,000 27,000 77,000 $50,000 Bal. Machinery Dr. Cr. 1, 2012 Aug. 3 Sept. 10 Nov. 15 Jan. Debit Balance $140,000 Purchase of Machinery Cost of Machinery Constructed Machinery Sold $62,000 202,000 250,000 184,000 48,000 $6,000 Accumulated Depreciation- Machinery Bal. $ 84,000 63,000 Cr. Dr. Credit Balance Jan. 1, 2012 Apr. 8 Nov. 15 $21,000 Extraordinary Repairs Accum. Depreciation on Machinery Sold Depreciation for 2012 37,800 54,600 25,200 Dec. 31 $16,800