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

Requirement
1. Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Use the format of the operating activities section of Exhibit 12-6. Also evaluate the operating cash flow of Central Distributors. Give the reason for your evaluation.

Transcribed Image Text:

13,000 Depreciation expense .9,000 7,200 Increase in current liabilitis.... Payment of interes....12,000 Increase in current assets Sales revenue208,000 Loss on sale of land.. Acquisition of land with cash.42,000 Payment of income tax.. other than cash..26,000 7,300 5,000 20,000 Payment of dividends...