P23-8B (L03,6,8) (SCF—Direct and Indirect Methods) Comparativebalance sheet accounts of Hamblin Company are impresented below.Additional data: 1. Equipment that cost $20,000 and was 40%depreciated was sold in 2017. 2. Cash dividends were declared andpaid during the year. 3. Common stock was issued in exchange forland. 4. Investments that cost $25,000 were sold during the year.5. There were no write-offs of uncollectible accounts during theyear. Hamblin’s 2017 income statement is as follows. Instructions(a) Compute net cash provided by operating activities under thedirect method. (b) Prepare a statement of cash flows using theindirect method. HAMBLIN COMPANY COMPARATIVE BALANCE SHEET ACCOUNTSAS OF DECEMBER 31 2017 2016 Debit Balances Cash $ 60,000 $ 71,500Investments (available-for-sale) 30,000 55,000 Accounts receivable152,000 136,000 Inventory 118,000 84,000 Land 50,000 15,000Buidings 160,000 160,000 Equipment 60,000 41,500 Total assets$630,000 $563,000 Totals Credit Balances Allowance for doubtfulaccounts $ 6,000 $ 3,000 Accumulated depreciation-buildings 40,00032,000 Accumulated depreciation -equipment 24,000 18,500 Accountspayable 102,000 95,000 Income taxes payable 13,000 8,000 Long-termnotes payable 65,000 80,000 Common stock 295,000 236,500 Retainedearnings 85,000 90,000 Totals $630,000 $563,000 Sales $750,000Less: Cost of goods sold 480,000 Gross profi t 270,000 Less:Operating expenses (includes depreciation expense and bad debtexpense) 145,000 Income from operations 125,000 Other revenues andexpenses Gain on sale of investments $7,000 Loss on sale ofequipment (4,000) 3,000 Income before taxes 128,000 Income taxes52,000 Net income 76,000