(L02,4) (Partial SCF—Indirect Method) The accounts below appear in the ledger of Anita Baker Company.

Instructions From 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.

Retained Earnings Dr. Cr. Bal. Jan. 1,2017 Aug. 15 Dec. 31 Credit Balance $ 42,000 Dividends (cash) $15,000 27,000 Net Income for 2017 $40,000 67,000 Equipment Dr. Cr. Bal. Jan. 1, 2017 Debit Balance $140,000 Aug. 3 Sept. 10 Purchase of Equipment $62,000 202,000 Cost of Equipment Constructed 48,000 250,000 Nov. 15 Equipment Sold $56,000 194,000 Accumulated Depreciation- Equipment Dr. Cr. Bal. Jan. Apr. 8 Nov. 15 1,2017 Credit Balance $ 84,000 Major Repairs $21,000 63,000 Accum. Depreciation on Equipment Sold 25,200 37,800 Dec. 31 Depreciation for 2017 $16,800 54,600