Comparative balance sheet accounts of Sharpe Company

Comparative balance sheet accounts of Sharpe Company are presented below.
Additional data:

1.
Equipment that cost $10,000 and was 60% depreciated was sold in 2014.
2.
Cash dividends were declared and paid during the year.
3.
Common stock was issued in exchange for land.
4.
Investments that cost $35,000 were sold during the year.
5.
There were no write-offs of uncollectible accounts during the year.
Sharpe’s 2014 income statement is as follows.
Sales revenue $950,000
Less: Cost of goods sold
600,000
Gross profit 350,000
Less: Operating expenses (includes depreciation expense and bad debt expense)
250,000
Income from operations 100,000
Other revenues and expenses
Gain on sale of investments
$15,000
Loss on sale of equipment

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(3,000)

12,000
Income before taxes 112,000
Income taxes
45,000
Net income
$ 67,000
Instructions
(a)
Compute net cash provided by operating activities under the direct method.
(b)
Prepare a statement of cash flows using the indirect method.