Comparative statement of financial position accounts of Sharpe Company are presented below.

Additional data:
1. Equipment that cost HK$10,000 and was 60% depreciated was sold in 2019.
2. Cash dividends were declared and paid during the year.
3. Ordinary shares were issued in exchange for land.
4. Equity investments that cost HK$35,000 were sold during the year.
5. There were no write-offs of uncollectible accounts during the year.
Shi's 2019 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 indirect method.

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Shi Group COMPARATIVE STATEMENT OF FINANCIAL POSITION ACCOUNTS AS OF DECEMBER 31 (IN THOUSANDS) Debit Balances 2019 2018 Cash HK$ 70,000 HK$ 51,000 155,000 Accounts Receivable 130,000 75,000 Inventory 61,000 Equity Investments (non-trading) 55,000 85,000 Equipment 70,000 48,000 Buildings 145,000 145,000 Land 40,000 25,000 Totals HK$610,000 HK$545,000 Credit Balances HK$10,000 HK$8,000 Allowance for Doubtful Accounts Accumulated Depreciation-Equipment 21,000 14,000 Accumulated Depreciation-Buildings 37,000 28,000 Accounts Payable 66,000 60,000 Income Taxes Payable 12,000 10,000 Long-Term Notes Payable 62,000 70,000 Share Capital-Ordinary 310,000 260,000 Retained Earnings 92,000 95,000 HK$610,000 HK$545,000 Totals Sales revenue HK$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 income and expense Gain on sale of investments HK$15,000 Loss on sale of equipment (3,000) 12,000 Income before taxes 112,000 Income taxes 45,000 Net income HK$ 67,000