Comparative statement of financial position accounts of Shi Group are presented below.

Additional data:
1. Equipment that cost HK$10,000 and was 60% depreciated was sold in 2015.
2. Cash dividends were declared and paid during the year.
3. Ordinary shares were issued in exchange for land.
4. Equity investments that cost HK$35,000 were sold during the year.
5. There were no write-offs of uncollectible accounts during the year.
Shi’s 2015 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 indirect method.

Transcribed Image Text:

SHI GROUP COMPARATIVE STATEMENT OF FINANCIAL POSITION ACCOUNTS AS OF DECEMBER 31 (IN THOUSANDS) Debit Balances 2015 2014 Cash HK$ 70,000 HK$ 51,000 Accounts Receivable 155,000 130,000 Inventory 75,000 61,000 Equity Investments (non-trading) 55,000 85,000 Equipment 70,000 48,000 Buildings 145,000 145,000 Land 40,000 25,000 Totals HK$610,000 HK$545,000 Credit Balances Allowance for Doubtful Accounts HK$ 10,000 HK$ 8,000 Accumulated Depreciation-Equipment 21,000 14,000 Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable 37,000 28,000 66,000 60,000 12,000 10,000 Share Capital-Ordinary Long-Term Notes Payable Retained Earnings Totals 62,000 70,000 310,000 260,000 92,000 95,000 HK$610,000 HK$545,000