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.

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Retained Earnings Cr. Bal. Dr. 1, 2020 Aug. 15 $ 42,000 27,000 Credit Balance Jan. Dividends (cash) $15,000 Net Income for 2020 $40,000 Dec. 31 67,000 Equipment Cr. Bal. Dr. Debit Balance $140,000 Jan. 1, 2020 Aug. 3 Sept. 10 Purchase of Equipment Cost of Equipment Constructed Equipment Sold $62,000 202,000 48,000 250,000 $56,000 194,000 Nov. 15 Accumulated Depreciation- Bal. Equipment Cr. Dr. Jan. 1, 2020 Apr. 8 Nov. 15 $ 84,000 Credit Balance Major Repairs Accum. Depreciation on Equipment Sold Depreciation for 2020 $21,000 63,000 25,200 37,800 $16,800 Dec. 31 54,600