The accounting records of The Fenceman, Inc., reveal the following:

Requirements 1. Compute cash flows from operating activities by the direct method.
2. Evaluate the operating cash flow of The Fenceman, Inc. Give the reason for your evaluation.

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Net Income $ 22,000 Payment of Payment of income tax. 13,000 salaries and wages. $34,000 Collection of Depreciation.. 12,000 dividend revenue. 7,000 Payment of interest.. 16,000 Payment to suppliers. 54,000 Payment of Collections from customers... 102,000 dividends... 7,000