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Exercise 13-6 The three accounts shown below appear in the general ledger of Herrick Corp. during 2015 ate 1 Balance July 31 Sept. 2 Now.
Exercise 13-6 The three accounts shown below appear in the general ledger of Herrick Corp. during 2015 ate 1 Balance July 31 Sept. 2 Now. 10 Purchase of equipment Cost of equipment constructed Cost of equipment sold 161,770 232,980 284,620 50,400 234,220 71,210 51,640 Debit it Balan ate an. 1 Balance Nov. 10 Accumulated depreciation on equipment sold Dec. 31 Depreciation for year 70,820 40,680 28,060 68,740 30,140 Retained Earnings Balan ate Jan. 1 Aug. 23 Dec. 31 1 Baance Dividends (cash) Net income 105,780 91,930 78,860 170,790 13,850 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 $5,010. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $51,640.) (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) HERRICK CORP
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