The accounting records of Chicago 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 12-6. Also evaluate the operating cash flow of Chicago Distributors. Give the reason for yourevaluation.

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S 35,000 7,100 12,000 Depreciation expense Collection of dividend revenue. Payment of interest.. Sales revenue... Gain on sale of land.1 Acquisition of land with cash Decrease in current liabilities. 19,000 Increase in current assets h..25,000 Payment of dividends..7,700 14,000 35,000 Payment of income tax