The three accounts shown below appear in the general ledger of Chaudry Corp. during 2014.

Instructions
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 $5,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of$53,000.)

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Equipment Date Debit Credit Balance Purchase of equipment Cost of equipment constructed Cost of equipment Balance 160,000 230,000 283,000 234,000 an. July 31 Sept. 2 Nov. 10 70,000 53,000 sold 49,000 Accumulated Depreciation--Equipment Date Debit Credit Balance Balance 71,000 43,000 an. Nov. 10 Acmulated depreciation on 28,000 equipment sold Depreciation for year Dec. 31 23,000 66,000 Retained Earnings Debit Date Jan. 1 Aug. 23 Dec. 31 Credit Balance Dividends (cash) Net income Balance 105,000 88,000 155,000 17,000 67,000