The following three accounts appear in the general ledger of Herrick Corp. during 2020. Equipment
Date Debit Credit Balance
Jan. 1 Balance 161,200
July 31 Purchase of equipment 68,100 229,300
Sept. 2 Cost of equipment constructed54,600 283,900
Nov. 10 Cost of equipment sold 49,100 234,800
Accumulated Depreciation—Equipment
Date Debit Credit Balance
Jan. 1 Balance 70,700
Nov. 10 Accumulated depreciation on equipment sold
31,200 39,500
Dec. 31 Depreciation for year 24,200 63,700
Retained Earnings
Date Debit Credit Balance
Jan. 1 Balance 104,200
Aug. 23 Dividends (cash) 15,800 88,400
Dec. 31 Net income 66,700 155,100
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 $4,900. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $54,600.) (Show amounts that decrease cash flow with either a - sign e. g. -15,000 or in parenthesis e. g. (15,000).)