6. [Extension of Box 3-2; cash flow; conversion of indirect to direct method] Exhibit 3P-3 contains financial statement data for A. M. Castle, a steel wholesaler. The statement of cash flows is prepared using the indirect method.

a. Using the data in Exhibit 3P-3, prepare a direct method state- ment of cash flow from operations for the six months ended June 30, 2001.

b. A M. Castle reduced its common stock dividend from $.195 per quarter to $.12 per quarter after the first quarter of 2001 and to $.06 per quarter after the third quarter of 2001.