Exercise 17-07 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 Balance 104,200 88,900 157,800 15,300 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 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 Click If you would like to Show Work for this question: Open Show Work