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.

January 1 December 31 ASSETS Cash .. 52.000 93,000 151,000 30,000 . .790,000 $ 58,000 106,000 162,000 30,000 830,000 (504,000) 682,000 Land . Buildings and Equipment (Cost) Total Assets . LIABILITIES AND SHAREHOLDERS EQUITY 656,000 10,000 120,000 250,000 140,000 $ 656,000 141,000 8,000 109,000 250,000 174,000 682,000 Common Stock Retained EamingsPw. . Total Liabilities and Shareholders' Equity . . . . . $1,200,000 Cost of Goods Sold. $788,000 280,000 54,000 12,000 22,000 Interest. come laxes. $1,156,000 $ 44,000 (10,000) $ 34,000 140,000 S 174,000 Total Expenses. Net Income Dividends on Common Stock.. Addition to Retained Earnings for Year..... Retained Earnings, December 31, .. .