The three accounts shown below appear in the general ledger of Chaudry Corp. during 2012.

InstructionsFrom the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on sale of equipment was $5,000.

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Equipment Balance Date Debit Credit 160,000 Jan. Balance July 31 Sept. 2 Purchase of equipment Cost of equipment constructed Cost of equipment sold 70,000 230,000 53,000 283,000 234,000 Nov. 10. 49,000 Accumulated Depreciation-Equipment Debit Date Credit Balance Jan. Balance 71,000 Nov. 10 Accumulated depreciation on equipment sold Depreciation for year 30.000 41,000 Dec. 31 28,000 69,000 Retained Earnings Balance Date Debit Credit Jan. 1 Balance 105,000 Aug. 23 Dec. 31 Dividends (cash) 14.000 91,000 67,000 158,000 Net income