The three accounts shown below appear in the general ledger of Chaudry Corp.

during 2014.

Equipment Date Debit Credit Balance Hance 1 Balance 160,000 fuly 31 Purchase of equipment 70,000 230,000 Sept. 2 Cost of equipment constructed 53,000 283,000 Nov. 10 Cost of equipment sold 49,000 234,000 Accumulated Depreciation—Equipment Date Debit Credit Balance dans «1 Balance 71,000 Nov. 10 Accumulated depreciation on 28,000 43,000 equipment sold Dec: 31 Depreciation for year 23,000 66,000 Retained Earnings Date Debit Credit Balance Ae, al Balance 105,000 Aug. 23 Dividends (cash) 17,000 88,000 Decmesl Net income 67,000 155,000 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

$5,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,000.)