The three accounts shown below appear in the general ledger of Chaudry NV during 2025.

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.)
Prepare statement of cash flows and compute free cash flow.

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