Portions of the financial statements for Hawkeye Company are provided below.

Required:
1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method.
2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method.

Transcribed Image Text:

Sales Cost of goods sold Gross margin Operating expenses: Salaries For the Year Ended December 31, 2024 ($ in millions) HAWKEYE COMPANY Income Statement Depreciation Loss on sale of land Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income $232 190 12 $900 350 550 434 116 4 (40) 80 40 $ 40