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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)
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).)
25000 Net Cash Provided by Operating Activities 82400 Cash Flows from Investing Activities Purchase of Equipment Cost of Equipment Constructed 62500 47700 Sale of Equipment 49600 Major Repairs on Equipment -42400 Net Cash Used by Investing Activities 7 -103000 Cash Flows from Financing Activities Payment of Cash Dividends 15000 Net Decrease in Cash 35600
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