- Your answer is partially correct. The following three accounts appear in the general ledger of Buffalo Industries during 2022. Equipment Debit Credit Date Jan. 1 July 31 Sept. 2 Nov. 10 Balance Purchase of equipment Cost of equipment constructed Cost of equipment sold 52.500 39,750 Balance 120,000 172.500 212.250 175,500 36,750 Credit Date Jan. 1 Nov. 10 Dec. 31 Accumulated Depreciation Equipment Debit Balance Accumulated depreciation on equipment sold 12,000 Depreciation for year Balance 53,250 41.250 62.250 21,000 Retained Earnings Debit Credit Date Jan. 1 Aug. 23 Dec. 31 Balance Dividends (cash) Net income Balance 78,750 68,250 122,250 10,500 54,000 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 $6,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $39,750.) (Show amounts that decrease cash flow with either a-signe.g.-15,000 or in parenthesis e.g. (15,000).) Buffalo Industries Partial Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income 54.000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 21,000 Loss on Disposal of Plant Assets 6.000 27000 Net Cash Provided by Operating Activities 81000 Cash Flows from Investing Activities V Sale of Equipment 18750 Construction of Equipment 39750 Purchase of Equipment 52500 Cash Flows from Investing Activities 73500 Cash Flows from Financing Activities Payment of Cash Dividends 10500