Comparative balance sheet accounts of sharpe company are presented

P23-8  Comparative balance sheet accounts of Sharpe Company are presented below.

 

     

        and so on…………………………….

 

 

 

 

 

 

Additional data:

 

1.  Equipment that cost $10,000 and was 60% depreciated was sold in 2012.

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 during the year. 

 

Sharpe’s 2012 income statement is as follows.

 

 

 

     and so on……………….

 

 

 

 

Required:

 

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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