Condensed financial statement data for Hale Company for the current year appear in Exhibits 6.23 and 6.24. During the current year, the firm sold for $5,000 equipment costing $15,000 with$10,000 of accumulated depreciation.
Exhibits 6.23

Exhibits 6.24

a. Prepare a statement of cash flows for Hale Company for the year using the indirect method of computing cash flow from operations. Support the statement with a T-account work sheet.
b. Derive a presentation of cash flows from operations using the direct method.
c. Present a statement of cash flows for Hale Company using the direct method for cash flows from operations. Include reconciliation of net income to cash flow from operations.
d. Comment on the pattern of cash flows from operations, investing, and financingactivities.

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