Problem 23-08

Comparative balance sheet accounts of Flint Company are presented below.

FLINT COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31
Debit Balances		2020		2019
Cash		$70,700		$50,900
Accounts Receivable		154,500		131,300
Inventory		75,000		61,600
Debt investments (available-for-sale)		55,200		84,600
Equipment		69,700		47,600
Buildings		144,200		144,200
Land		39,800		24,800
Totals		$609,100		$545,000
Credit Balances
Allowance for Doubtful Accounts		$9,900		$8,000
Accumulated DepreciationEquipment		20,800		13,800
Accumulated DepreciationBuildings		37,300		28,100
Accounts Payable		66,700		59,700
Income Taxes Payable		11,900		9,900
Long-Term Notes Payable		62,000		70,000
Common Stock		310,000		260,000
Retained Earnings		90,500		95,500
Totals		$609,100		$545,000

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 $34,600 were sold during the year.
5.		There were no write-offs of uncollectible accounts during the year.

Flints 2020 income statement is as follows.

Sales revenue					$951,100
Less: Cost of goods sold					603,200
Gross profit					347,900
Less: Operating expenses (includes depreciation expense and bad debt expense)					249,700
Income from operations					98,200
Other revenues and expenses
Gain on sale of investments		$15,000
Loss on sale of equipment		(3,100	)		11,900
Income before taxes					110,100
Income taxes					45,300
Net income					$64,800

(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).)