ACC 560 MART Invent Yourself/acc560mart.com ACC 560 MART Invent Yourself/acc560mart.com | Page 64

Retained Earnings
Date Credit
Balance
Debit
Jan. 1 Balance 105,000
Aug.
23
Dividends( cash)
14,000
91,000
Dec.
31
Net income
77,000
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. ROJAS CORPORATION Comparative Balance Sheets December 31