Comparative balance sheet accounts of Jensen Company are presented below.

Additional data:
1. Equipment that cost $10,000 and was 40% depreciated was sold in 2008.
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.
Jensen€™s 2008 income statement is as follows.

Instructions
(a) Compute net cash provided by operating activities under the direct method.
(b) Prepare a statement of cash flows using the indirectmethod.

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Jensen Company Comparative Balance Sheet Accounts As of December 31 Debit Balances 2008 2007 Cash Accounts Receivable Merchandise Inventory Investments (Available-for-sale) Equipment Buildings Land $80,000 51,000 130,000 61,000 85,000 48,000 145,000 25,000 $610,000 $645,000 145,000 75,000 55,000 70,000 145,000 40,000 Totals Credit Balances Allowance for Doubtful Accounts Accumulated Depreciation- Equipment Accumulated Depreciation-Building Accounts Payable Income Taxes Payable Long-Term Notes Payable Common Stock Retained Earnings $ 8,000 14,000 28,000 60,000 10,000 70,000 260,000 95,000 $610,000 $545,000 S 10,000 21,000 37,000 70,000 12,000 62,000 310,000 88,000 Totals Sales Less: Cost of goods sold Gross profit Less: Operating expenses (includes depreciation expense and bad debt expense) Income from operations Other revenues and expenses $950,000 600,000 350,000 250,000 100,000 Gain on sale of investments $15,000 (3,000) Loss on sale of equipment Income before taxes Income taxes Net income 12,000 112,000 45,000 $ 67,000