E13-6 The three accounts shown below appear in the general ledger of Chaudry Corp. during 2014.

Equipment

Date			Debit		Credit		Balance
Jan.	1	Balance					160,000
July	31	Purchase of equipment	70,000				230,000
Sept.	2	Cost of equipment constructed	53,000				283,000
Nov.	10	Cost of equipment sold			49,000		234,000
Accumulated DepreciationEquipment
Date			Debit		Credit		Balance
Jan.	1	Balance					71,000
Nov. Dec.	10 31	Accumulated depreciation on equipment sold Depreciation for year	28,000		23,000		43,000 66,000
Retained Earnings
Date			Debit		Credit		Balance
Jan.	1	Balance					105,000
Aug.	23	Dividends (cash)	17,000				88,000
Dec.	31	Net income			67,000		155,000

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 $5,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,000.)