Comparative balance sheet accounts of Jensen Company are presented below.
1. Equipment that cost $10,000 and was 40% depreciated was sold in 2008.
2. Cash dividends were declared and paid during the year.
3. Common stock was issued in exchange for land.
4. Investments that cost $35,000 were sold during the year.
5. There were no write-offs of uncollectible accounts during the year.
Jensenâs 2008 income statement is as follows.
(a) Compute net cash provided by operating activities under the direct method.
(b) Prepare a statement of cash flows using the indirectmethod.