Exercise 23-18

The accounts below appear in the ledger of Anita Baker Company.

		Retained Earnings		Dr.		Cr.		Bal.
Jan. 1, 2014		Credit Balance						$42,400
Aug. 15		Dividends (cash)		$15,880				26,520
Dec. 31		Net Income for 2014				$49,230		75,750
		Equipment		Dr.		Cr.		Bal.
Jan. 1, 2014		Debit Balance						$139,520
Aug. 3		Purchase of Equipment		$62,870				202,390
Sept. 10		Cost of Equipment Constructed		48,940				251,330
Nov. 15		Equipment Sold				$65,750		185,580
		Accumulated DepreciationEquipment		Dr.		Cr.		Bal.
Jan. 1, 2014		Credit Balance						$83,040
Apr. 8		Extraordinary Repairs		$20,410				62,630
Nov. 15		Accum. Depreciation on Equipment Sold		25,990				36,640
Dec. 31		Depreciation for 2014				$17,430		54,070

From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of equipment (November 15) was $6,710. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Anita baker company statement of cash flows (partial) for the year ended December 31, 2014

		$
Adjustments to reconcile net income to
	$
		xxx
		$xxx