Comparative balance sheet accounts of Pronghorn Company are presented below. PRONGHORN COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2020 2019 Cash $69,700 $50,500 Accounts Receivable 154,000 130,000 Inventory 75,600 61,100 Debt investments (available-for-sale) 55,500 85,500 Equipment 69,500 48,100 Buildings 145,300 145,300 Land 39,900 24,800 Totals $609,500 $545,300 Credit Balances Allowance for Doubtful Accounts Accumulated Depreciation-Equipment Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable Long-Term Notes Payable Common Stock Retained Earnings Totals $10,100 $8,000 20,800 14,000 37,100 28,300 65,500 59,500 11,900 10,000 62,000 70,000 310,000 260,000 92,100 95,500 $609,500 $545,300 Additional data: 1. Equipment that cost $10,100 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 $34,800 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Pronghorn's 2020 income statement is as follows. $949,800 600,100 349,700 250,100 99,600 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses (includes depreciation expense and bad debt expense) Income from operations Other revenues and expenses Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $14,900 (3,000) 11,900 111,500 45,000 $66,500 (a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Net cash flow from operating activities $ (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg. (15,000).) PRONGHORN COMPANY Statement of Cash Flows Adjustments to reconcile net income to $ . M >