Question 16 Comparative balance sheet accounts of Grouper Company are presented below. GROUPER COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2020 2019 Cash $69,400 $51,500 Accounts Receivable 156,000 130,000 Inventory 75,700 60,400 Debt investments (available-for-sale) 54,500 85,300 Equipment 70,700 48,000 Buildings 144,900 144,900 Land 40,000 25,200 Totals $611,200 $545,300 Credit Balances Allowance for Doubtful Accounts $10,100 $8,100 Accumulated DepreciationEquipment 21,100 14,100 Accumulated DepreciationBuildings 37,200 28,300 Accounts Payable 66,100 59,500 Income Taxes Payable 11,800 9,900 Long-Term Notes Payable 62,000 70,000 Common Stock 310,000 260,000 Retained Earnings 92,900 95,400 Totals $611,200 $545,300 Additional data: 1. Equipment that cost $10,000 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 $34,700 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Groupers 2020 income statement is as follows. Sales revenue $957,500 Less: Cost of goods sold 606,000 Gross profit 351,500 Less: Operating expenses (includes depreciation expense and bad debt expense) 251,000 Income from operations 100,500 Other revenues and expenses Gain on sale of investments $15,100 Loss on sale of equipment (3,000 ) 12,100 Income before taxes 112,600 Income taxes 45,200 Net income $67,400 (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).) GROUPER COMPANY Statement of Cash Flows $ Adjustments to reconcile net income to $ $ $