The accounting records of Rodeo 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 Rodeo Talent Agency. Give the reason for your evaluation.

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Net Income Depreciation. $30,000 6,000 Sales Revenue.. 10,000 Decrease in current liabilities 24,000 Loss on sale of land. 6,000 Increase in current assets other than Cash 15,000 Acquisition of land 42,000