Exercise 13-6 The three accounts shown below appear in the general ledger of Herrick Corp. during 2015. Equipment Debit Credit Date Jan. 1 July 31 Sept. 2 Nov. 10 Balance Purchase of equipment Cost of equipment constructed Cost of equipment sold 70,600 53,840 Balance 160,790 231,390 285,230 233,590 51,640 Credit Date Jan. 1 Nov. 10 Dec 31 Accumulated Depreciation Equipment Debit Balance Accumulated depreciation on equipment sold 30,430 Depreciation for year Balance 69,280 38,850 67,540 28,690 Retained Earnings Debit Credit Date Jan. 1 Aug. 23 Dec 31 Balance Dividends (cash) Net income 12,990 Balance 105,580 92,590 170,650 78,060 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 $6,080. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,840.) (Show amounts that decrease cash flow with either a - sign e.g. - 15,000 or in parenthesis e.g. (15,000).) HERRICK CORP Partial Statement of Cash Flows For the Year Ended December 31, 2015 Adjustments to reconcile net income to