The three accounts shown below appear in the general ledger of Herrick Corp. during 2014.

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.

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uipment Date an Balance July 31 Purchase of equipment Sept. 2 Cost of equipment constructed Nov. 10 Cost of equipment sold Debit Credit Balance 160,000 230,000 283,000 49,000 234,000 70,000 53,000 Accumulated Depreciation-Equipment Date an Balance Nov. 10 Accumulated depreciation on Debit Credit Balance 71,000 41,000 equipment sold Depreciation for year 30,000 Dec. 31 28,000 69,000 Retained Earnings Date Debit an Balance Aug. 23 Dividends (cash) Dec. 31 Net income Credit Balance 105,000 91,000 77,000 168,000 14,000