The three accounts shown below appear in the general ledger

Exercise 13-6 The three accounts shown below appear in the general ledger of Herrick Corp. during 2015. Jan. 1 Balance 160,610 July 31 Purchase of equipment 68,250 228,860 Sept. 2 Cost of equipment constructed 51,430 280,290 Nov. 10 Cost of equipment sold 48,560 231,730 Accumulated DepreciationEquipment Jan. 1 Balance 71,190 Nov. 10 Accumulated depreciation on equipment sold 29,920 41,270 Dec. 31 Depreciation for year 29,150 70,420 Retained Earnings Jan. 1 Balance 105,120 Aug. 23 Dividends (cash) 12,500 92,620 Dec. 31 Net income 78,990 171,610 From the postings in the accounts, indicate how the information is reported on a statement of cash ows using the indirect method. The loss on disposal of equipment was $5,150. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $51,430.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) From the postings in the accounts, indicate how the information is reported on a statement of cash ows using the indirect method. The loss on disposal of equipment was $5,150. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $51,430.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) H ERRICK CORP Partial Statement of Cash Flows For the Year Ended December 31, 2015 . Cash Flows from Operating Activities 7 I 78990 , I 1 Net Income 1 Adjustments to reconcile net income to & \\ Net Cash Provided by Operating Activities t & Depreciation Expense 29150 \\ , | I Loss on Disposal of Equipment 5150 & _ J 34300 Net Cash Provided by Operating Activities c 113290 | V Cash Flows from Investing Activities Sale of Equipment 13490 v Purchase of Equipment X 68250 V X Construction of Equipment 51430 Net Cash used by Investing Activities X 106190 V Cash Flows from Financing Activities Payment of Cash Dividends X 12500