Comparative balance sheet accounts of sharpe company are presented

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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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