These are the financial statements for Simpsons Ltd

Balance Sheet

as at $31$ December $2023$

Statement of profit or loss

for the year ended $31$ December $2023$

The following additional data were provided:

The entity paid a cash dividend during the year.

During the year equipment was sold for cash. This equipment cost $$18,000$ originally

and had a carrying amount of $$8,500$ at the time of sale.

All depreciation expense is in the selling expense category.

All operating expenses except for depreciation were paid in cash.

Required:

a$)$ Prepare a statement of cash flows using the direct method

b$)$ Comment on the results of the cash flow statement.