The three accounts shown below appear in the general ledger of Halo Corp. during 2024. 

Instructions 

From the postings in the accounts, indicate how the information is reported on a cash flow statement using the indirect method. The loss on disposal of equipment was $7,000 and the cash dividends were paid.

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Equipment Date Jan. 1 Balance July 31 Purchase of equipment Nov. 10 Cost of equipment sold Accumulated Depreciation-Equipment Date Jan. 1 Balance Nov. 10 Accumulated depreciation on equipment sold Dec. 31 Depreciation for year Retained Earnings Date Jan. 1 Balance Aug. 23 Dividends (cash) Dec. 31 Profit for the year Debit 70,000 Debit 30,000 Debit 14,000 Credit 49,000 Credit 28,000 Credit 77,000 Balance 160,000 230,000 181,000 Balance 71,000 41,000 69,000 Balance 105,000 91,000 168,000