The accounts below appear in the ledger of Anita Baker Company

Instructions
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$5,800.

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Retained Earnings Jan. 1, 2014 Dividends (cash) Net Income for 2014 $15,000 Dec. 31 $40,000 Jan. 1, 2014 $140,000 Debit Balance Purchase of Equipment Cost of Equipment Constructed Equipment Sold S56,000 Jan. 1, 2014 Credit Balance Extraordinary Repairs Accum. Depreciation on Equipment Sold Depreciation for 2014 Dec. 31 $16,800