(SCF -Direct and Indirect Methods) Comparative balance sheet account on Jensen Company are presented below.

Jensen Company

Comparative Balance Sheet Accounts

As of December 31

Debit Balances	2008	2007
Cash	80000	51000
Accounts Receivable	145000	130000
Merchandise Inventory	75000	61000
Investments (Available-for-sale)	55000	85000
Equipment	70000	48000
Buildings	145000	145000
Land	40000	25000
Totals	610000	545000
Cradit Balances
Allow for Doubtful Accounts	10000	8000
Accumulated Depreciation - Equipment	21000	14000
Accumulated Depreciation - Building	37000	28000
Accounts Payable	70000	60000
Income Taxes Payable	12000	10000
Long-Term Notes Payable	62000	70000
Common Stock	310000	260000
Retained Earnings	88000	95000
Totals	610000	545000

Additiona 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 diring the year.

Jensen's 2008 Income statment is as follows:

Sales		950000
Less: COGS		(600000)
Gross Profit		350000
Less: Operating expenses		(250000)
Income from operations		100000
Other revenues and expenses
Gain on sale of investments	15000
Loss on sale of equipment	(3000)	12000
Income before taxes		112000
Income taxes		45000
Net Income		67000

Instructions: (a) Compute net cash provided by operating activities under the direct method.

(b) Prepare a statement of cash flows using the indirect method.