Presented below are three accounts that appear in the general ledger of Wesley Snipes Co. during 2002.

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 was $4,000.

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Date Equipment Debit Credit Balance 160,000 70,000 230,000 53.000 283,000 45,000 238,000 Jan. 1 July 31 Balance Purchase of equipment Sept. 2 Cost of equipment constructed Nov. 10 Cost of equipment sold Accumulated Depreciation-Equipment Date Jan. 1 Balance Nov. 10 Accumulated depreciation on equipment sold Dec. 31 Depreciation for year Debit Credit Balance 71,000 30,000 41,000 24,000 65,000 Retained Earnings Date Jan. 1 Aug. 23 Balance Dividends (cash) Dec. 31 Net income Debit Credit Balance 105,000 14,000 91,000 57,000 148,000