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 2022.

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 2022 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.

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Shi Group Comparative Statement of Financial Position Accounts As of December 31 (in thousands) Debit Balances 2022 2021 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 HKS$545,000 Credit Balances Allowance for Doubtful Accounts HK$ 10,000 HK$ 8,000 Accumulated Depreciation-Equipment 21,000 14,000 Accumulated Depreciation-Buildings 37,000 28,000 Accounts Payable Income Taxes Payable 66,000 60,000 12,000 10,000 Long-Term Notes Payable Share Capital-Ordinary 62,000 70,000 310,000 260,000 Retained Earnings 95,000 HK$610,000 HK$545,000 92,000 Totals