The following three accounts appear in the general ledger of Herrick Corp. during 2019.

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 $7,000.

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Equipment Debit Date Jan. 1 July 31 Sept. 2 Nov. 10 Balance Purchase of equipment Cost of equipment constructed Cost of equipment sold Cred Balance 160,000 230,000 283,000 234,000 70,000 53,000 49,000 Accumulated Depreciation-Equipment Debit Cred Balance 71,000 Date Jan. 1 Nov. 10 Balance Accumulated depreciation on equipment sold 30,000 41,000 69,000 Dec. 31Depreciation for year 28,000 Retained Earnings Debit Date Jan. 1 Aug. 23 Diidends (cash) Dec. 31 Credit Balance 105,000 91,000 168,000 Balance 14,000 Net income 77,000