Practice Exercise 23-4

The accounts below appear in the ledger of Pronghorn Company.

		Retained Earnings		Dr.		Cr.		Bal.
Jan. 1, 2017		Credit Balance						$46,600
Aug. 15		Dividends (cash)		$15,000				31,600
Dec. 31		Net Income for 2017				$57,400		89,000
		Equipment		Dr.		Cr.		Bal.
Jan. 1, 2017		Debit Balance						$139,800
Aug. 3		Purchase of Equipment		$62,500				202,300
Sept. 10		Cost of Equipment Constructed		47,700				250,000
Nov. 15		Equipment Sold				$49,600		200,400
		Accumulated DepreciationEquipment		Dr.		Cr.		Bal.
Jan. 1, 2017		Credit Balance						$84,800
Apr. 8		Major Repairs		$21,200				63,600
Nov. 15		Accumulated Depreciation on Equipment Sold		25,500				38,100
Dec. 31		Depreciation for 2017				$19,600		57,700

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 $5,400. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

PRONGHORN COMPANY Statement of Cash Flows (partial) For the Year Ended December 31, 2017 Adjustments to reconcile net income to net cash provided by operating activities