Analysis of the accounting records of Beaufain Corporation reveals:

Compute cash flows from operating activities by the direct method. Use the format of the operating section of Exhibit 18-2.

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Cash sales..... S 9,000 Increase in current assets Loss on sale of land 5,000 other than cash. $17,000 Acquisition of land 37,000 Payment of dividends 7,000 Payment of accounts Collection of accounts payable.. 48,000 receivable. 93,000 Net income.. 21,000 Payment of salaries and Payment of income tax.. 13,000 wages.. 34,000 Collection of dividend Depreciation. 12,000 revenue... 7,000 Decrease in current Payment of interest.. 16,000 liabilities.... 23,000