(Partial SCF—Indirect Method) The accounts below appear in the ledger of Anita Baker Company.

Instructions From the postings in the accounts above, indicate how the information 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 equipment (November 15) was $5,800.

Retained Earnings Dr. Cr. Bal. Jan. 1, 2008 Credit Balance $ 42,000 Aug. 15 Dividends (cash) $15,000 27,000 Dec. 31 Net Income for 2008 $40,000 67,000 Machinery Dr. Cr. Bal. Jan. 1, 2008 Debit Balance $140,000 Aug. 3 Purchase of Machinery $62,000 202,000 Sept. 10 Nov. 15 Cost of Machinery Constructed Machinery Sold Accumulated Depreciation- Machinery 48,000 250,000 $56,000 194,000 Dr. Cr. Bal. Jan. 1, 2008 Credit Balance $ 84,000 Apr. 8 Extraordinary Repairs $21,000 63,000 Nov. 15 Accum. Depreciation on Machinery Sold 25,200 37,800 Dec. 31 Depreciation for 2008 $16,800 54,600