The accounting records of Rising Star Talent Agency reveal the following:

Requirements

1. Compute cash flows from operating activities by the indirect method. Use the format of the operating activities section shown in Exhibit 11-3.
2. Evaluate the operating cash flow of Rising Star Talent Agency. Give the reason for your evaluation.

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Net Income Depreciation.. Sales Revenue.. $22,000 12,000 9,000 Decrease in current liabilities. 20,000 Loss on sale of land. 5,000 Increase in current assets other than Cash...... 27,000 Acquisition of land............. 37,000