Exercise 13-6 The three accounts shown below appear in the general ledger of Herrick Corp. during 2015. Equipment Date Debit Credit Balance Jan. 1 Balance 160,020 July 31 Purchase of equipment 71,900 231,920 Sept. 2 Cost of equipment constructed 52,320 284,240 Nov. 10 Cost of equipment sold 51,630 232,610 Accumulated DepreciationEquipment Date Debit Credit Balance Jan. 1 Balance 71,220 Nov. 10 Accumulated depreciation on equipment sold 31,010 40,210 Dec. 31 Depreciation for year 28,210 68,420 Retained Earnings Date Debit Credit Balance Jan. 1 Balance 105,210 Aug. 23 Dividends (cash) 13,140 92,070 Dec. 31 Net income 76,700 168,770 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 $4,620. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $52,320.) (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 $ 76,700 Adjustments to reconcile net income to $ 28,210 4,620 109,530 52,320 160,00 36,320 13,140 13,140