Exercise 13-7 The following three accounts appear in the general ledger of Herrick Corp. during 2020. Equipment Date Debit Credit Jan. 1 July 31 Sept. 2 Nov. 10 Balance Purchase of equipment Cost of equipment constructed Cost of equipment sold 70,400 53,300 Balance 161,800 232,200 285,500 236,500 49,000 Date Credit Jan. 1 Accumulated Depreciation-Equipment Debit Balance Accumulated depreciation on equipment sold 28,000 Depreciation for year Balance 70,200 42,200 63,200 Nov. 10 Dec. 31 21,000 Retained Earnings Date Debit Credit Jan. 1 Balance 104,200 88,900 157,800 Balance Dividends (cash) Net Income Aug. 23 15,300 Dec. 31 68,900 From the postings in the accounts, indicate how the information is reported on a statement of cash flows using their constructed is reported in the investing activities section as a decrease in cash of $53,300.) (Show amounts that From the postings in the accounts, indicate how the information is reported on a statement of constructed is reported in the investing activities section as a decrease in cash of $53,300.) (S HERRICK CORP Partial Statement of Cash Flows 4 Adjustments to reconcile net income to y. I $ Click if you would like to Show Work for this question: Open Show Work Exercise 13-7 The following three accounts appear in the general ledger of Herrick Corp. during 2020 Equipment Date Debit Credit Jan. 1 July 31 Sept. 2 Nov. 10 Balance Purchase of equipment Cost of equipment constructed Cost of equipment sold 70,400 53,300 Balance 161,800 232,200 285,500 236,500 49,000 Date Credit Jan. 1 Nov. 10 Dec. 31 Accumulated Depreciation-Equipment Debit Balance Accumulated depreciation on equipment sold 28,000 Depreciation for year Balance 70,200 42,200 63,200 21,000 Retained Earnings Date Debit Credit | Jan. 1 Aug. 23 Dec. 31 Balance Dividends (cash) Net Income 15,300 Balance 104,200 88,900 157,800 68.900 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 $5,700. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,300.) (Show amounts that decrease cash flow with either - signe.g. - 15,000 or in parenthesis e.o. (15,000).)