The following three accounts appear in the general ledger of Herrick Corp. during 2020.

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 plant assets was $7,000.

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Equipment Debit Balance Date Credit Jan. 1 Balance 160,000 July 31 Sept. 2 Purchase of equipment Cost of equipment constructed Cost of equipment sold 70,000 230,000 53,000 283,000 Nov. 10 49,000 234,000 Accumulated Depreciation-Equipment Date Debit Credit Balance Jan. Balance 71,000 Accumulated depreciation on equipment sold Depreciation for year Nov. 10 30,000 41,000 Dec. 31 28,000 69,000 Retained Earnings Credit Balance Date Debit Jan. Balance 105,000 Dividends (cash) Aug. 23 14,000 91,000 77,000 Dec. 31 Net income 168,000