The income statement and other selected data for the Boyer Company are shown below:

BOYER COMPANY Income Statement For Year Ended December 31, 2002 Sales $19,000 Operating expenses:

Depreciation expense $ 2,300 Other operating expenses 12,000 14,300 Operating income 4,700 Loss on sale of land 1,500 Income before tax expense 3,200 Tax expense 1,000 Net income $2,200 Supplemental information:

a. Dividends declared and paid $ 800

b. Land purchased 3,000

c. Land sold 500

d. Equipment purchased 2,000

e. Bonds payable retired 2,000

f. Common stock sold 1,400 g. Land acquired in exchange for common stock 3,000 h. Increase in accounts receivable 400 i. Increase in inventories 800 j. Increase in accounts payable 500 k. Decrease in income taxes payable 400 Required

a. Prepare a schedule of change from an accrual basis to a cash basis income statement.

b. Using the schedule of change from accrual basis to cash basis income statement computed in (a), present the cash provided by operations, using (1) the direct approach and (2) the indirect approach.