Financial statement data for Dickerson Manufacturing Company for the current year appear in Exhibit 6.25.

Additional information includes the following:
(1) Net income for the year was $568,000; dividends declared and paid were $60,000.
(2) Depreciation expense for the year was $510,000 on buildings and machinery.
(3) The firm sold for $25,000 machinery originally costing $150,000 with accumulated depreciation of $120,000.
(4) The firm retired bonds during the year at their book value.
a. Prepare a statement of cash flows for Dickerson Manufacturing Company for the year using the indirect method to compute cash flow from operations. Support the statement with a T-account work sheet.
b. Comment on the pattern of cash flows from operating, investing, and financingactivities.

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January 1 December 31 ASSETS Current Assets Cash S 358,000 946,000 1,004,000 $ 2,308,000 $ 324,000 1,052,000 1,208,000 $2,584,000 Noncurrent Assets Land. Less Accumulated Depreciation. $594,000 8,678,000 $ 630,000 9,546,000 (3.974,000(4.364.000) $ 5.812.000 $ 8.396,000 Total Noncurrent AssetsNwW 5,298,000 $7,606,000 LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities Accounts Payable.. $412,000 274,000 588,000 $ 1,274,000 $558,000 290,000 726,000 $1,574,000 Total Current Liabilities Noncurrent Liabilities Bonds Payable .. 1,934,000 $ 3.508.000 1,984,000 Total LiabilitiesEW..NWW Shareholders' Equity Common Stock. Retained Eamings. . 3,258,000 1,672,000 2,676,000 $ 4,348,000 $ 7,606,000 1,704,000 3,184,000 $4,888,000 $ 8.396.000 Total Liabilities and Shareholders' Equity..