The following three accounts appear in the general ledger of Sage Hill Inc. during 2017.

Exercise 12-6 Your answer is partially correct. Try again The following three accounts appear in the general ledger of Sage Hill Inc. during 2017 Equipment Debit Date Jan. 1 July 31 Sept. 2 Nov. 10 Balance Purchase of equipment Cost of equipment constructed Cost of equipment sold Credit Balance 401,760 577,530 710,613 123,039 587,574 175,770 133,083 Date Jan. Balance Nov. 10 Accumulated depreciation on equipment sold Dec. 31 Depreciation for year Debit Credit Balance 178,281 138,105 70,308 208,413 40,176 Retained Earnings Date Jan. 1 Aug. 23 Dec. 31 Balance Dividends (cash) Net income Debit Credit Balance 263,655 228,501 180,792 409,293 35,154 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 $20,088. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $133,083.) (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis e.g. (15,000).) Sage Hill Inc. Partial Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income 180792 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 70308 20088 Loss on Disposal of Plant Assets 90396 Net Cash Provided by Operating Activities 271188 Cash Flows from Investing Activities Purchase of Equipment -175770 Construction of Equipment 133083 Sale of Equipment 62775 Net Cash used by Investing Activities 20088 Cash Flows from Financing Activities Payment of Cash Dividends 35154