Equipment
Date				Debit		Credit		Balance
Jan. 1		Balance						160,470
July 31		Purchase of equipment		69,690				230,160
Sept. 2		Cost of equipment constructed		51,000				281,160
Nov. 10		Cost of equipment sold				48,900		232,260
Accumulated DepreciationEquipment
Date				Debit		Credit		Balance
Jan. 1		Balance						69,410
Nov. 10		Accumulated depreciation on equipment sold		29,160				40,250
Dec. 31		Depreciation for year				29,430		69,680
Retained Earnings
Date				Debit		Credit		Balance
Jan. 1		Balance						105,240
Aug. 23		Dividends (cash)		13,490				91,750
Dec. 31		Net income				75,020		166,770

75,020

166,770

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 equipment was $6,320. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $51,000.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)