HELP NEEDED ASAP!!! P.23-8Direct and Indirect Method

c23BProblems.indd Page 8 04/02/13 8:49 PM f-392 /208/WB00806_ONL/XXXXXXXXXXXXX/ch23/text_s 8 Chapter 23 Statement of Cash Flows 3 6 8 P23-8B (SCFDirect and Indirect Methods) Comparative balance sheet accounts of Hamblin Company are impresented below. HAMBLIN COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 2014 2013 $ 60,000 30,000 152,000 118,000 50,000 160,000 60,000 $ 71,500 55,000 136,000 84,000 15,000 160,000 41,500 $630,000 $563,000 $ $ $630,000 $563,000 Debit Balances Cash Investments (available-for-sale) Accounts receivable Inventory Land Buidings Equipment Total assets Totals Credit Balances Allowance for doubtful accounts Accumulated depreciation-buildings Accumulated depreciation-equipment Accounts payable Income taxes payable Long-term notes payable Common stock Retained earnings Totals 6,000 40,000 24,000 102,000 13,000 65,000 295,000 85,000 3,000 32,000 18,500 95,000 8,000 80,000 236,500 90,000 Additional data: 1. 2. 3. 4. 5. Equipment that cost $20,000 and was 40% depreciated was sold in 2014. Cash dividends were declared and paid during the year. Common stock was issued in exchange for land. Investments that cost $25,000 were sold during the year. There were no write-offs of uncollectible accounts during the year. Hamblin's 2014 income statement is as follows. Sales Less: Cost of goods sold $750,000 480,000 Gross profit Less: Operating expenses (includes depreciation expense and bad debt expense) 270,000 145,000 Income from operations Other revenues and expenses Gain on sale of investments Loss on sale of equipment 125,000 $7,000 (4,000) Income before taxes Income taxes Net income 3,000 128,000 52,000 76,000 Instructions (a) Compute net cash provided by operating activities under the direct method. (b) Prepare a statement of cash flows using the indirect method. 3 6 8 P23-9B (Indirect SCF) Thompson Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information