Problem - Cavett Company's comparative balance sheet and income statement for last year appear below:

Comparative Balance Sheet

Ending Balance Beginning Balance

Assets:

Cash $ 45,000 $ 30,000

Accounts receivable 38,000 40,000

Inventory 67,000 60,000

Long-term investments 162,000 200,000

Property, plant and equipment 178,000 150,000

Less accumulated depreciation 52,000 50,000

Total assets $ 438,000 $ 430,000

Liabilities and stockholders' equity:

Accounts payable $ 36,000 $ 40,000

Accrued liabilities 24,000 30,000

Income taxes payable 15,000 20,000

Bonds payable 20,000 30,000

Common stock 295,000 270,000

Retained earnings 48,000 40,000

Total liabilities and stockholders' equity $ 438,000 $ 430,000

Income Statement

Sales $ 250,000

Cost of goods sold 100,000

Gross margin 150,000

Selling and administrative expenses 90,000

Net operating income 60,000

Loss on sale of investment 5,000

Income before taxes 55,000

Income taxes 22,000

Net income $ 33,000

The following additional information is available for the year:

During the year, the company sold long-term investments with a cost of $38,000 when purchased for $33,000 in cash.

All sales were on credit.

The company paid a cash dividend of $25,000.

The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year.

Required:

a. Using the direct method, determine the net cash provided by operating activities for the year.

b. Using the indirect method, determine the net cash provided by operating activities for the year.

c. Using the net cash provided by operating activities figure from either part a or b, prepare a statement of cash flows for the year.