Comparative balance sheet accounts of Sharpe Company are presented below.

SHARPE COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31
Debit Balances	2014	2013
Cash	$72,400	$51,640
Accounts Receivable	154,740	130,570
Inventory	74,610	61,790
Investments (Available-for-sale)	54,870	85,380
Equipment	70,290	48,090
Buildings	144,140	144,140
Land	39,630	25,140
Totals	$610,680	$546,750
Credit Balances
Allowance for Doubtful Accounts	$10,330	$8,100
Accumulated Depreciation?Equipment	21,320	14,260
Accumulated Depreciation?Buildings	37,180	28,680
Accounts Payable	66,940	60,640
Income Taxes Payable	12,990	10,980
Long-Term Notes Payable	62,370	70,060
Common Stock	310,740	260,680
Retained Earnings	88,810	93,350
Totals	$610,680	$546,750

Additional data:

1.	Equipment that cost $10,600 and was 60% depreciated was sold in 2014.
2.	Cash dividends were declared and paid during the year.
3.	Common stock was issued in exchange for land.
4.	Investments that cost $35,480 were sold during the year.
5.	There were no write-offs of uncollectible accounts during the year.

Sharpe?s 2014 income statement is as follows.

Sales revenue	$961,120
Less: Cost of goods sold	602,800
Gross profit	358,320
Less: Operating expenses (includes depreciation expense and bad debt expense)	259,230
Income from operations	99,090
Other revenues and expenses
Gain on sale of investments	$15,450
Loss on sale of equipment	(3,100	)	12,350
Income before taxes	111,440
Income taxes	45,110
Net income	$66,330

(a)Compute net cash provided by operating activities under the direct method.(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (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 e.g. -15,000 or in parenthesis e.g. (15,000).)

SHARPE COMPANY Statement of Cash Flows For the Year Ended December 31, 2014
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities
Issuance of Common StockSale of InvestmentsIncrease in Income Taxes PayableDecrease in InventoryIncrease in InventoryIssuance of Common Stock for LandPurchase of InvestmentsGain on Sale of EquipmentIncrease in Accounts PayableDepreciation ExpenseDecrease in Income Taxes PayablePurchase of EquipmentSale of EquipmentIncrease in Accounts Receivable (Net)Net IncomePayment of Long-Term Notes PayableLoss on Sale of InvestmentsCash Dividends PaidDecrease in Accounts Receivable (Net)Gain on Sale of InvestmentsLoss on Sale of EquipmentDecrease in Accounts Payable	$
Adjustments to reconcile net income to
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities
Gain on Sale of InvestmentsCash Dividends PaidSale of InvestmentsLoss on Sale of InvestmentsIssuance of Common StockIncrease in Income Taxes PayablePurchase of InvestmentsPurchase of EquipmentDecrease in Accounts PayableDecrease in Accounts Receivable (Net)Increase in Accounts Receivable (Net)Decrease in Income Taxes PayableNet IncomeIncrease in Accounts PayableIssuance of Common Stock for LandSale of EquipmentDepreciation ExpensePayment of Long-Term Notes PayableGain on Sale of EquipmentLoss on Sale of EquipmentIncrease in InventoryDecrease in Inventory	$
Issuance of Common StockPurchase of EquipmentSale of EquipmentCash Dividends PaidDecrease in Accounts PayableDecrease in InventorySale of InvestmentsGain on Sale of EquipmentIncrease in InventoryLoss on Sale of EquipmentLoss on Sale of InvestmentsIncrease in Accounts Receivable (Net)Increase in Accounts PayablePayment of Long-Term Notes PayableIncrease in Income Taxes PayableDecrease in Income Taxes PayableIssuance of Common Stock for LandGain on Sale of InvestmentsNet IncomeDepreciation ExpenseDecrease in Accounts Receivable (Net)Purchase of Investments
Increase in Accounts Receivable (Net)Decrease in Accounts Receivable (Net)Decrease in Accounts PayableDepreciation ExpenseIncrease in InventoryGain on Sale of InvestmentsDecrease in InventoryIncrease in Accounts PayableSale of InvestmentsIssuance of Common Stock for LandNet IncomeLoss on Sale of InvestmentsIncrease in Income Taxes PayableDecrease in Income Taxes PayableSale of EquipmentPurchase of InvestmentsPurchase of EquipmentCash Dividends PaidPayment of Long-Term Notes PayableLoss on Sale of EquipmentGain on Sale of EquipmentIssuance of Common Stock
Issuance of Common StockGain on Sale of EquipmentIncrease in Accounts PayableDecrease in Accounts PayablePayment of Long-Term Notes PayableCash Dividends PaidDecrease in InventoryGain on Sale of InvestmentsDecrease in Accounts Receivable (Net)Issuance of Common Stock for LandPurchase of EquipmentIncrease in Income Taxes PayableNet IncomeDepreciation ExpenseLoss on Sale of InvestmentsLoss on Sale of EquipmentIncrease in Accounts Receivable (Net)Decrease in Income Taxes PayableIncrease in InventoryPurchase of InvestmentsSale of InvestmentsSale of Equipment
Decrease in Accounts PayableGain on Sale of EquipmentIncrease in Accounts PayableIncrease in Accounts Receivable (Net)Cash Dividends PaidDecrease in Income Taxes PayablePurchase of EquipmentIssuance of Common StockPurchase of InvestmentsLoss on Sale of EquipmentLoss on Sale of InvestmentsPayment of Long-Term Notes PayableIncrease in InventoryIncrease in Income Taxes PayableSale of InvestmentsSale of EquipmentIssuance of Common Stock for LandDecrease in InventoryGain on Sale of InvestmentsNet IncomeDecrease in Accounts Receivable (Net)Depreciation Expense
Purchase of InvestmentsPurchase of EquipmentIssuance of Common StockIncrease in Accounts PayableDecrease in Accounts Receivable (Net)Increase in InventoryIncrease in Income Taxes PayableDecrease in InventoryDepreciation ExpenseSale of InvestmentsLoss on Sale of EquipmentGain on Sale of InvestmentsDecrease in Income Taxes PayableSale of EquipmentGain on Sale of EquipmentDecrease in Accounts PayableIncrease in Accounts Receivable (Net)Payment of Long-Term Notes PayableCash Dividends PaidLoss on Sale of InvestmentsIssuance of Common Stock for LandNet Income
Purchase of EquipmentIncrease in Accounts Receivable (Net)Sale of InvestmentsDepreciation ExpenseGain on Sale of EquipmentDecrease in Accounts Receivable (Net)Gain on Sale of InvestmentsDecrease in InventoryIssuance of Common Stock for LandSale of EquipmentPayment of Long-Term Notes PayableLoss on Sale of InvestmentsIncrease in Income Taxes PayableCash Dividends PaidNet IncomeLoss on Sale of EquipmentDecrease in Income Taxes PayablePurchase of InvestmentsIncrease in Accounts PayableIncrease in InventoryDecrease in Accounts PayableIssuance of Common Stock
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities
Increase in Accounts Receivable (Net)Payment of Long-Term Notes PayableDecrease in Accounts Receivable (Net)Net IncomeLoss on Sale of EquipmentDepreciation ExpenseSale of EquipmentDecrease in InventoryIssuance of Common StockIncrease in InventoryIssuance of Common Stock for LandGain on Sale of InvestmentsSale of InvestmentsPurchase of EquipmentGain on Sale of EquipmentLoss on Sale of InvestmentsCash Dividends PaidIncrease in Accounts PayableDecrease in Accounts PayableIncrease in Income Taxes PayableDecrease in Income Taxes PayablePurchase of Investments
Gain on Sale of EquipmentIncrease in InventoryDepreciation ExpenseLoss on Sale of InvestmentsGain on Sale of InvestmentsLoss on Sale of EquipmentIncrease in Accounts Receivable (Net)Purchase of InvestmentsPurchase of EquipmentSale of EquipmentDecrease in Accounts Receivable (Net)Decrease in InventoryIncrease in Accounts PayableDecrease in Accounts PayableIncrease in Income Taxes PayableDecrease in Income Taxes PayableSale of InvestmentsPayment of Long-Term Notes PayableCash Dividends PaidIssuance of Common StockIssuance of Common Stock for LandNet Income
Sale of InvestmentsIssuance of Common Stock for LandPurchase of EquipmentSale of EquipmentPayment of Long-Term Notes PayableGain on Sale of InvestmentsNet IncomeDepreciation ExpenseCash Dividends PaidLoss on Sale of InvestmentsIssuance of Common StockLoss on Sale of EquipmentGain on Sale of EquipmentDecrease in Income Taxes PayableIncrease in Accounts Receivable (Net)Decrease in Accounts Receivable (Net)Increase in InventoryDecrease in InventoryIncrease in Accounts PayableDecrease in Accounts PayableIncrease in Income Taxes PayablePurchase of Investments
Decrease in InventoryIssuance of Common StockGain on Sale of EquipmentIncrease in Accounts Receivable (Net)Gain on Sale of InvestmentsIncrease in InventoryDecrease in Accounts Receivable (Net)Increase in Accounts PayableSale of InvestmentsDecrease in Accounts PayableIncrease in Income Taxes PayableLoss on Sale of EquipmentDecrease in Income Taxes PayableCash Dividends PaidLoss on Sale of InvestmentsPurchase of InvestmentsPurchase of EquipmentSale of EquipmentPayment of Long-Term Notes PayableIssuance of Common Stock for LandNet IncomeDepreciation Expense
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities
Increase in InventoryDecrease in Accounts PayableGain on Sale of InvestmentsIncrease in Accounts Receivable (Net)Depreciation ExpenseDecrease in Income Taxes PayableCash Dividends PaidDecrease in Accounts Receivable (Net)Gain on Sale of EquipmentPurchase of InvestmentsPayment of Long-Term Notes PayableDecrease in InventoryIssuance of Common StockIssuance of Common Stock for LandPurchase of EquipmentNet IncomeSale of InvestmentsIncrease in Income Taxes PayableSale of EquipmentLoss on Sale of InvestmentsIncrease in Accounts PayableLoss on Sale of Equipment
Gain on Sale of EquipmentPurchase of InvestmentsSale of InvestmentsIncrease in Income Taxes PayableIncrease in Accounts PayableCash Dividends PaidLoss on Sale of EquipmentIncrease in Accounts Receivable (Net)Decrease in Accounts PayableIssuance of Common StockPurchase of EquipmentDecrease in Accounts Receivable (Net)Issuance of Common Stock for LandDecrease in Income Taxes PayableIncrease in InventorySale of EquipmentPayment of Long-Term Notes PayableNet IncomeDepreciation ExpenseGain on Sale of InvestmentsDecrease in InventoryLoss on Sale of Investments
Sale of EquipmentIncrease in Income Taxes PayableIssuance of Common StockNet IncomeSale of InvestmentsDecrease in InventoryIssuance of Common Stock for LandDecrease in Accounts PayableDecrease in Income Taxes PayableCash Dividends PaidDecrease in Accounts Receivable (Net)Payment of Long-Term Notes PayablePurchase of InvestmentsIncrease in Accounts PayablePurchase of EquipmentDepreciation ExpenseLoss on Sale of EquipmentLoss on Sale of InvestmentsGain on Sale of InvestmentsGain on Sale of EquipmentIncrease in Accounts Receivable (Net)Increase in Inventory
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities	$
Cash, January 1, 2014Cash, December 31, 2014Cash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in CashNoncash Investing and Financing Activities
Gain on Sale of InvestmentsIncrease in Income Taxes PayableLoss on Sale of InvestmentsIncrease in Accounts PayableIssuance of Common StockCash Dividends PaidIssuance of Common Stock for LandNet IncomeIncrease in Accounts Receivable (Net)Decrease in Accounts PayableLoss on Sale of EquipmentGain on Sale of EquipmentDecrease in Accounts Receivable (Net)Decrease in Income Taxes PayablePurchase of InvestmentsDepreciation ExpenseDecrease in InventoryIncrease in InventoryPurchase of EquipmentSale of InvestmentsSale of EquipmentPayment of Long-Term Notes Payable	$

Click if you would like to Show Work for this question:

Open Show Work

5/13/2016 Problem 238 Print by: Sasha Cortes FULC162_ACCT201_21847: SP2016 21847 ACCT 201BFHY1 Intermediate Accounting / Ch. 23 HW *Problem 238 Your answer is partially correct. Try again. Comparative balance sheet accounts of Sharpe Company are presented below. SHARPE COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2014 2013 Cash $72,400 $51,640 Accounts Receivable 154,740 130,570 Inventory 74,610 61,790 Investments (Availableforsale) 54,870 85,380 Equipment 70,290 48,090 144,140 144,140 39,630 25,140 $610,680 $546,750 Buildings Land Totals Credit Balances Allowance for Doubtful Accounts $10,330 $8,100 Accumulated DepreciationEquipment 21,320 14,260 Accumulated DepreciationBuildings 37,180 28,680 Accounts Payable 66,940 60,640 Income Taxes Payable 12,990 10,980 LongTerm Notes Payable 62,370 70,060 310,740 260,680 88,810 93,350 $610,680 $546,750 Common Stock Retained Earnings Totals Additional data: 1. 2. 3. 4. 5. Equipment that cost $10,600 and was 60% depreciated was sold in 2014. Cash dividends were declared and paid during the year. Common stock was issued in exchange for land. Investments that cost $35,480 were sold during the year. There were no writeoffs of uncollectible accounts during the year. Sharpe's 2014 income statement is as follows. Sales revenue $961,120 Less: Cost of goods sold 602,800 Gross profit 358,320 Less: Operating expenses (includes depreciation expense and bad debt expense) 259,230 Income from operations 99,090 Other revenues and expenses Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income http://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni $15,450 (3,100 ) 12,350 111,440 45,110 $66,330 1/3 5/13/2016 Problem 238 (a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) Net cash flow from operating activities $ 60,130 (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. 15,000 or in parenthesis e.g. (15,000).) SHARPE COMPANY Statement of Cash Flows For the Year Ended December 31, 2014 Cash Flows from Operating Activities $ 66,330 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 19,800 Gain on Sale of Investments (15,450) Loss on Sale of Equipment Increase in Accounts Receivable (Net) 3,100 (12,820) Increase in Inventory (12,820) Increase in Accounts Payable 6,300 Increase in Income Taxes Payable 2,010 (5,670) Net Cash Provided by Operating Activities 60,660 Cash Flows from Investing Activities Purchase of Investments (4970) Purchase of Equipment (32,800) Sale of Investments 20,030 Sale of Equipment 3,260 Net Cash Provided by Investing Activities 14,448 Cash Flows from Financing Activities Payment of LongTerm Notes Payable 8,100 Cash Dividends Paid http://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni 2/3 5/13/2016 Problem 238 Issuance of Common Stock Net Cash Used by Financing Activities Net Increase in Cash Cash, January 1, 2014 Cash, December 31, 2014 51,640 $ Noncash Investing and Financing Activities Issuance of Common Stock for Land $ 15,450 Question Attempts: 2 of 5 used Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni 3/3