Exercise 17o shown below appear in the general ledger of Her

Exercise 17-o shown below appear in the general ledger of Herrick Corp. during 2017. Equipment Date Jan. 1 July 31 Sept. 2 Nov. 10 Balance Purchase of equipment Cost of equipment constructed Cost of equipment sold Debit Credit Balance 160,400 231,300 283,900 51,300 232,600 70,900 52,600 Accumulated Depreciation-Equipment Date Jan. 1 Nov. 10 Dec. 31 Balance Accumulated depreciation on equipment sold Depreciation for year Debit Credit Balance 69,600 40,700 21,000 61,700 28,900 Retained Earnings Date Jan. 1 Aug. 23 Dec. 31 Balance Dividends (cash) Net income Debit Credit Balance 105,100 89,200 66,700 155,900 15,900 44157

Solution

Statement of cash flow :

Cash flow from operating activities
Net income	66700
Adjustment to reconcile net income
Depreciation	21000
Loss on sale of equipement	5600
Net cash flow from operating activities		93300
Cash flow from investing activities
Purchase of equipment	(70900)
Construction cost	(52600)
Sale of equipment	28000
Net cash flow from investing activities		(95500)
Cash flow from financing activities
Dividend paid	(15900)
Net cash flow from financing activities		(15900)
Net cash flow		(18100)