The accounts below appear in the ledger of Anita Baker Company.
Retained Earnings Dr. Cr. Bal.
Jan. 1, 2017 Credit Balance \( 42,000
Aug. 15 Dividends (cash) \)15,000 27,000
Dec. 31 Net Income for 2017 \(40,000 67,000
Equipment Dr. Cr. Bal.
Jan. 1, 2017 Debit Balance \)140,000
Aug. 3 Purchase of Equipment \(62,000 202,000
Sept. 10 Cost of Equipment Constructed 48,000 250,000
Nov. 15 Equipment Sold \)56,000 194,000
Accumulated Depreciation— Equipment Dr. Cr. Bal.
Jan. 1, 2017 Credit Balance \( 84,000
Apr. 8 Major Repairs \)21,000 63,000
Nov. 15 Accum. Depreciation on Equipment Sold 25,200 37,800
Dec. 31 Depreciation for 2017 \(16,800 54,600
Instructions
From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of equipment (November 15) was \)5,800.