P23-7 (LO 2. 3. 4) (SCF-Direct and Indirect Methods) Comparative statement of financial position accounts of Shi Group are presented below. Shi Group Comparative Statement of Financial Position Accounts As of December 31 (in thousands) Debit Balances Cash Accounts Receivable 2022 2021 HK$ 70,000 HK$ 51,000 155.000 130,000 Inventory 75.000 61,000 Equity Investments (non-trading) 55,000 85,000 Equipment 70,000 48,000 Buildings 145,000 145,000 Land 40,000 25,000 Totals HK$610,000 HK$545,000 Credit Balances Shi Group Comparative Statement of Financial Position Accounts As of December 31 (in thousands) Allowance for Doubtful Accounts HK$ 10,000 HK$ 8,000 Accumulated Depreciation-Equipment Accumulated Depreciation-Buildings Accounts Payable 21,000 14,000 37.000 28,000 66,000 60,000 Income Taxes Payable 12,000 10,000 Long-Term Notes Payable 62,000 70,000 Share Capital-Ordinary 310,000 260,000 Retained Earnings 92,000 95.000 Totals HK$610,000 HK$545.000 Additional data: 1. Equipment that cost HK$10,000 and was 60% depreciated was sold in 2022 2. Cash dividends were declared and paid during the year. 3. Ordinary shares were issued in exchange for land. 4. Equity investments that cost HK$35,000 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Shi's 2022 income statement is as follows. Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses (includes depreciation expense and bad debt expense) Income from operations Other income and expense Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income HK$950,000 600,000 350,000 250,000 100,000 HK$15.000 (3,000) 12,000 112,000 45,000 HK$ 67,000 Instructions a. Compute net cash provided by operating activities under the direct method