P23.83 (LO 2,4) (SCF-Direct and Indirect Methods) Comparative balance sheet accounts of Hamblin Company are presented below HAMBLIN COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 $ 60,000 30.000 152.000 118.000 50.000 160.000 50.000 S.000 2019 A 5 71.500 (11500) 55.000 (25000) 136.000 1000 34.000 34000 15.000 25000 100.000 41.500 13500 5563,000 1000 Debit Balances Cash Investments Equity Accounts receivable Inventory Land Buiding 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 eaming Totals $ 8.000 10.00 24.000 109,000 13.000 63.000 295.000 85.000 5680.000 $3,000 32,000 8000 18.500 55000 95.000 7000 8.000 5000 80.000 CI5000 236,500 58500 90.000 (5000) 5563.000 67000 Additional data: 1. Equipment that cost $20,000 and was 40% depreciated was sold in 2020 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land. 4. Investments that cost $25,000 were sold during the year 5. There were no write-offs of uncollectible accounts during the year. Hamblin's 2020 income statement is as follows: $750,000 180,000 270.000 145.000 125.000 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 Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $7,000 14.000 3.000 128.000 52,000 75.000 Instructions (a) Compute net cash provided by operating activities under the direct method (b) Prepare a statement of cash flows using the indirect method