(a) Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new equipment was purchased for $183,200. (b) Bonds payable for $100,000 were retired by payment at their face amount. (c) 5,000 shares of common stock were issued at $13 for cash. (d) Cash dividends declared and paid, $25,000. Prepare a statement of cash flow, using the indirect method of reporting cash flows from operating activities

Statement of cashflow

Operating Activities

(a) Loss on  equipment disposed      60,000

Investing Activities

(a) Acquisition on new equipment      (183,200)

Financing activities

(b) Retirement of bond payable           (100,000)

(c ) Issue of new common stock share  65,000

(d) Dividend paid                                     (25,000)

Explanation:

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