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

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 sale of equipment was $8,000.

uipment Date Debit Credit Jan. 1 July 3 Purchase of equipment Sept. 2 Nov. 10 Cost of cquipment sold Balance 160,000 230,000 283,000 234,000 Balance 70,000 53,000 Cost of cquipment constructed 49,000 Accumulated Depreciation-Equipment Date Debit Credit Balance 71,000 41,000 JanBalance Nov. 10 Accumulated depreciation on equipment sold Depreciation for year 30,000 Dec. 31 28,000 69,000 Retained Earnings Date Debit Credit Jan.Balance Aug. 23 Dividends (cash) Dec. 31 Balance 105,000 86,000 158,000 19,000 Net income 72,000