ACC 560 MART Great Stories /acc560mart.com ACC 560 MART Great Stories /acc560mart.com | Page 57

Date
Credit
Jan. 1
71,000
Debit
Balance
Balance
Nov. 10
30,000 Accumulated depreciation on equipment sold
41,000
Dec. 31
28,000 Depreciation for year
69,000
Retained Earnings
Date
Credit
Debit
Balance
Jan. 1
105,000 Balance
Aug. 23
14,000 Dividends (cash)
91,000
Dec. 31
77,000 Net income
168,000
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 equipment was $7,000. (Hint:
Cost of equipment constructed is reported in the investing
activities section as a decrease in cash of $53,000.
E13-7
Rojas Corporation's comparative balance sheets are presented
below.