The following three accounts appear in the general ledger of Herrick Corp. during 2020. Equipment Date Debit Credit Balance
Jan. 1 Balance 158,000
July 31 Purchase of equipment 69,600 227,600
Sept. 2 Cost of equipment constructed 55,000 282,600
Nov. 10 Cost of equipment sold 49,500 233,100

Accumulated Depreciation—Equipment

Date Debit Credit Balance
Jan. 1 Balance 71,400
Nov. 10 Accumulated depreciation on equipment sold 28,900 42,500
Dec. 31 Depreciation for year 22,600 65,100

Retained Earnings

Date Debit Credit Balance
Jan. 1 Balance 104,200
Aug. 23 Dividends (cash) 17,800 86,400
Dec. 31 Net income 68,800 155,200

Required:
Indicate how the information is reported on a statement of cash flows using the indirect method.