The accounting records reveal the following:

Data table:

Net income $10,000 Depreciation $13,000

Collection of dividend revenue $6,900 Decrease in current liabilities $22,000

Payment of interest $18,000Decrease in current assets

Sales revenue$190,000 Other than cash $29,000

Gain on sale of land$28,000 Payment of dividends $7,600

Acquisition of land$29,000Payment of income tax$4,000

1. Compute the cash flows from operating activities by the indirect method. Also evaluate the operating cash flow of the company for a net decrease in cash. Give reasoning for the evaluation.

Cash flows from operating activities:

(1) ____________________________________ ______________________

Adjustments to reconcile net income to net cash used for operating activities:

(2)_______________________ _______________

(3) _____________________________________

(4) _________________________________________

(5) _______________________ ________________________

Net cash provided by (used for) operating activities._________________________

Evaluate the operating cash flow of the company. Give the reason for your evaluation.

Operating cash flow is (6)_______________, as shown by the (7) ________________ cash flows from operating activities.

(1)Options : Depreciation, gain on sale of land, decrease in current assets other than cash, payment of interest, decrease in current liabilities, net income, payment of dividends, payment of income tax.

(2)Options: Depreciation, gain on sale of land, decrease in current assets other than cash, payment of interest, decrease in current liabilities, net income, payment of dividends, payment of income tax

(3) Options: Depreciation, gain on sale of land, decrease in current assets other than cash, payment of interest, decrease in current liabilities, net income, payment of dividends, payment of income tax

(4) Options: Depreciation, gain on sale of land, decrease in current assets other than cash, payment of interest, decrease in current liabilities, net income, payment of dividends, payment of income tax

(5) Options: Depreciation, gain on sale of land, decrease in current assets other than cash, payment of interest, decrease in current liabilities, net income, payment of dividends, payment of income tax

(6) Options: weak, strong, positive, negative.