Comparative balance sheet accounts of Splish Company are presented below. SPLISH COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2020 2019 Cash $70,400 $51,500 Accounts Receivable 154,300 129,500 Inventory 75,000 61,700 Debt investments (available-for-sale) 55,300 84,900 Equipment 69,700 47,700 Buildings 145,500 145,500 Land 40,300 24,900 Totals $610,500 $545,700 Credit Balances Allowance for Doubtful Accounts $10,100 $8,000 Accumulated DepreciationEquipment 20,800 13,900 Accumulated DepreciationBuildings 37,100 28,000 Accounts Payable 65,500 60,500 Income Taxes Payable 12,000 9,900 Long-Term Notes Payable 62,000 70,000 Common Stock 310,000 260,000 Retained Earnings 93,000 95,400 Totals $610,500 $545,700 Additional data: 1. Equipment that cost $9,900 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. Splishs 2020 income statement is as follows. Sales revenue $947,700 Less: Cost of goods sold 594,600 Gross profit 353,100 Less: Operating expenses (includes depreciation expense and bad debt expense) 251,900 Income from operations 101,200 Other revenues and expenses Gain on sale of investments $15,000 Loss on sale of equipment (3,000 ) 12,000 Income before taxes 113,200 Income taxes 45,500 Net income $67,700 (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).)

SPLISH COMPANY Statement of Cash Flows Adjustments to reconcile net income to SPLISH COMPANY Statement of Cash Flows Adjustments to reconcile net income to