Comparative balance sheet accounts of Pearl Company are presented below.

PEARL COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31
Debit Balances		2020		2019
Cash		$69,400		$51,400
Accounts Receivable		153,600		129,600
Inventory		74,500		61,600
Debt investments (available-for-sale)		55,500		85,100
Equipment		70,500		47,800
Buildings		146,400		146,400
Land		39,600		24,800
Totals		$609,500		$546,700
Credit Balances
Allowance for Doubtful Accounts		$10,000		$7,900
Accumulated DepreciationEquipment		20,900		14,000
Accumulated DepreciationBuildings		37,200		27,900
Accounts Payable		66,200		59,500
Income Taxes Payable		12,000		10,000
Long-Term Notes Payable		62,000		70,000
Common Stock		310,000		260,000
Retained Earnings		91,200		97,400
Totals		$609,500		$546,700

Additional data:

1.		Equipment that cost $10,000 and was 60% depreciated was sold in 2020.
2.		Cash dividends were declared and paid during the year.
3.		Common stock was issued in exchange for land.
4.		Investments that cost $35,200 were sold during the year.
5.		There were no write-offs of uncollectible accounts during the year.

Pearls 2020 income statement is as follows.

Sales revenue					$948,400
Less: Cost of goods sold					603,600
Gross profit					344,800
Less: Operating expenses (includes depreciation expense and bad debt expense)					247,900
Income from operations					96,900
Other revenues and expenses
Gain on sale of investments		$15,000
Loss on sale of equipment		(3,000	)		12,000
Income before taxes					108,900
Income taxes					45,300
Net income					$63,600

(a) Compute net cash provided by operating activities under the direct method.

(b) Prepare a statement of cash flows using the indirect method.

PEARL COMPANY Statement of Cash Flows $ Adjustments to reconcile net income to