Required information E12-13 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of Sale of Plant and Equipment [The following information applies to the questions displayed below.] During two recent years, Perez Construction, Inc., disposed of the following plant and equipment: Plant and equipment (at cost) Accumulated depreciation on equipment disposed of Cash received Gain (loss) on sale Year 1 $ 76,100 Year 2 $ 15,700 42,585 20,064 (13,451) 4,873 14,363 3,536 E12-13 Part 2 2. Perez uses the indirect method for the operating activities section of the cash flow statement. What amounts related to the sales would be added or subtracted in the computation of Net Cash Flows from Operating Activities for each year? (Amounts to be deducted should be indicated with a minus sign.) PEREZ CONSTRUCTION, INC., Cash flows from operating activities Gain/Loss on sale of equipment Year 1 Year 2 $ 13,451