The accounting records of Central Distributors, Inc., reveal the following:

Requirement
1. Compute cash flows from operating activities by the indirect method. Use the format of the operating activities section of Exhibit.

Also evaluate the operating cash flow of Central Distributors. Give the reason for yourevaluation.

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$40,000 6,900 14,000 12,000 19,000 43,000 $15,000 Increase in current liabilities..23,000 Net inco Collection of dividend revenue. Payment of inte Sales revenue Loss on sale of i Acquisition of land Decrease in current assets other than cash 28,000 7,200 Payment of income tax12,000 Payment of dividends The Roadster Factory, Inc. (TRF) Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2011 Cash flows from operating activities: S50 Net income Adjustments to reconcile net income to net cash provided by operating activities: $ 18 Gain on sale of plant assets Increase in accounts recei Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in salary and wage paya Decrease in accrued liabilit vable (15) 34 27 $77 Net cash provided by operating a