Comparative statement of financial position accounts of Sharpe Company are presented below.

Additional data:
1. Equipment that cost $10,000 and was 60% depreciated was sold in 2010.
2. Cash dividends were declared and paid during the year.
3. Ordinary shares were issued in exchange for land.
4. Equity investments that cost $35,000 were sold during the year.
5. There were no write-offs of uncollectible accounts during the year.
Sharpe’s 2010 income statement is as follows.

Instructions
(a) Compute net cash provided by operating activities under the direct method.
(b) Prepare a statement of cash flows using the indirectmethod.

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SHARPE COMPANY COMPARATIVE STATEMENT OF FINANCIAL POSITION AcCOUNTS AS OF DECEMBER 31 Debit Balances 2010 2009 Cash Accounts Receivable Merchandise Inventory Equity Investments (non-trading) Equipment Buildings Land $70,000 51,000 130,000 61,000 85,000 48,000 145,000 25,000 $545,000 155,000 75,000 55,000 70,000 145,000 40,000 $610,000 Totals Credit Balances Allowance for Doubtful Accounts Accumulated Depreciation Equipment Accumulated Depreciation Building Accounts Payable Income Taxes Payable Long-Term Notes Payable Share Capital- Ordinary Retained Earnings $10,000 8,000 14,000 28,000 60,000 10,000 70,000 260,000 95,000 $545,000 21,000 37,000 66,000 12,000 62,000 310,000 92,000 $610,000 Totals $950,000 600,000 350,000 Sales Less: Cost of goods sold Gross profit Less: Operating expenses (includes depreciation expense and bad debt expense 250,000 Income from operations Other income and expense 100,000 Gain on sale of investments $15,000 Loss on sale of equipment Income before taxes Income taxes Net income (3,000) 12,000 112,000 45,000 67,000