The three accounts shown below appear in the general ledger of Cesar Corp. during 2010.

InstructionsFrom the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on sale of equipment was$5,000.

Equipment Date Debit Credit Balance Jan. 1. Balance 160,000 July 31 Sept. 2 Purchase of equipment Cost of equipment constructed Cost of equipment sold 70,000 53,000 230,000 283,000 234,000 Nov. 10 49,000 Accumulated Depreciation-Equipment Date Debit Credit Balance Jan. Balance 71,000 Nov. 10 Accumulated depreciation on equipment sold Depreciation for year 30,000 41,000 Dec. 31 28,000 69,000 Retained Earnings Credit Date Debit Balance Jan. 1 Balance 105,000 Aug. 23 Dec. 31 Dividends (cash) Net income 14,000 91,000 158,000 67,000