The three accounts shown below appear in the general ledger of Larson Corp. during 2017. 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 sale of equipment was $7,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $56,000.)

Question

The three accounts shown below appear in the general ledger of Larson Corp. during 2017.   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 sale of equipment was $7,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $56,000.)

Quizplus · Accepted Answer

The Answer of The three accounts shown below appear in the general ledger of Larson Corp. during 2017.   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 sale of equipment was $7,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $56,000.)

The Three Accounts Shown Below Appear in the General Ledger