Comparative balance sheet accounts of Sunland Company are presented below. SUNLAND COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2020 2019 Cash $69,700 $51,000 Accounts Receivable 153,800 131,000 Inventory 75,400 61,600 Debt investments (available-for-sale) 55,500 85,900 Equipment 70,600 48,400 Buildings 146,100 146,100 Land 40,400 24,800 Totals $611,500 $548,800 Credit Balances Allowance for Doubtful Accounts Accumulated Depreciation-Equipment Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable $10,000 20,800 37,300 66,000 12,100 $8,100 14,100 28,000 59,600 9,900 Income Taxes Payable Long-Term Notes Payable Common Stock Retained Earnings Totals 12,100 9,900 62,000 70,000 310,000 260,000 93,300 99,100 $611,500 $548,800 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 $35,200 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Sunland's 2020 income statement is as follows. Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses (includes depreciation expense and bad debt expense) $944,200 598,100 346,100 248,500 Sunland's 2020 income statement is as follows. Sales revenue $944,200 598,100 346,100 248,500 97,600 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 $14,900 (2,900) 12,000 109,600 45,200 $64,400 Net income (a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either 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).) SUNLAND COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 V Cash Flows from Operating Activities Net Income $ Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ Gain on Sale of Investments Loss on Sale of Equipment Increase in Accounts Receivable (Net) Increase in Inventory Increase in Accounts Payable V Increase in Accounts Payable Increase in Income Taxes Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Investments Purchase of Equipment Sale of Investments Sale of Equipment Net Cash Provided by Investing Activities Net Cash Provided by Financing Activities Payment of Long-term Notes Payable Net Cash Provided by Financing Activities Payment of Long-term Notes Payable Cash Dividends Paid Issuance of Common Stock Net Cash Used by Financing Activities Net Increase in Cash Cash, January 1, 2020