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Exercise 13-7 The following three accounts appear in the general ledger of Herrick Corp. during 2020 Equipment Date Debit Credit Balance Jan. Balnce 160,000 231,900

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Exercise 13-7 The following three accounts appear in the general ledger of Herrick Corp. during 2020 Equipment Date Debit Credit Balance Jan. Balnce 160,000 231,900 July 31 Purchase of equipment 71,900 Sept. 2 Cost of equipment constructed 286,900 55,000 Nov. 10 Cost of equipment sold 48,200 238,700 Accumulated Depreciation-Equipment Assignment page Date Debit Credit Balance 70,100 Jan Bance Nov. 10 Accumulated depreciation on equipment sold 30,700 39,400 Dec. 31 Depreciation for year 25,000 64,400 Retained Earning:s Date Debit Credit Balance 105,200 Jan. 1 Balance Aug. 23 Dividends (cash) 18,900 86,300 Dec. 31 Ne income 66,100 152,400 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 $5,200 (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $55,000.) (Show amounts that decrease cash fow with either a- sign e.g. -15,000 or in parenthesis e.g. (15,000).) HERRICK CORP Partial Statement of Cash Flows Adjustments to reconcile net income to

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