The following accounts appear in the ledger of Tanaka Limited, which uses IFRS and has adopted the policy of classifying dividends paid as operating activities:

Instructions
Show how the information posted in the accounts 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 machinery (November 15) was $5,800.

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Retained Earnin Dr. Cr Bal $ 42,000 27,000 67,000 Jan, 1, 2011 Aug. 15 Dec. 31 Credit balance Dividends (cash) Net income for 2011 $15,000 $40,000 Machi Dr Cr Bal Jan. 1, 2011 Aug. 3 Sept. 10 Nov. 15 Debit balance Purchase of machinery Cost of machinery constructed Machinery sold $140,000 202.000 250,000 194,000 $62,000 48,000 $56,000 Accumulated Depreciation-Machin Dr Bal an. 1, 201 Nov. 15 Credit balance $84,000 58,800 25,200 Accumulated depreciation on machinery sold Depreciation for 2011 Dec. 31 $16,800 75,600