P23-8. (SCFDirect and Indirect Methods) (LO 2, 4) Comparative balance sheet accounts of Sharpe Company are presented below. SHARPE COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2017 2016 Cash $70,000 $51,000 Accounts Receivable 155,000 130,000 Inventory 75,000 61,000 Debt investments (available-for-sale) 55,000 85,000 Equipment 70,000 48,000 Buildings 145,000 145,000 Land 40,000 25,000 Totals $610,000 $545,000 Credit Balances Allowance for Doubtful Accounts $10,000 $8,000 Accumulated DepreciationEquipment 21,000 14,000 Accumulated DepreciationBuildings 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 Common Stock 310,000 260,000 Retained Earnings 92,000 95,000 Totals $610,000 $545,000 Additional data: 1.Equipment that cost $10,000 and was 60% depreciated was sold in 2017. 2.Cash dividends were declared and paid during the year. 3.Common stock was issued in exchange for land. 4.Debt investments that cost $35,000 were sold during the year. 5.There were no write-offs of uncollectible accounts during the year. Sharpe's 2017 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 (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.