ACC 560 MART Motivated Minds/acc560mart.com ACC 560 MART Motivated Minds/acc560mart.com | Page 66

Retained Earnings
Date
Credit
Debit
Balance
Jan. 1
105,000 Balance
Aug. 23
91,000 Dividends (cash)
Dec. 31
77,000 Net income
168,000
14,000
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