The accounting records of Fence Up, Inc. reveal the following:

Net Income ............$ 64,000

Payment of income tax ........ 20,000

Collection ofdividend revenue ..... 7,000

Payment to suppliers........ 36,000

Collections from customers ....... 113,000

Payment of salaries and wages ..... $30,000

Depreciation ............ 15,000

Payment of interest ......... 18,000

Payment of dividends ......... 7,000

Requirements

1. Compute cash flows from operating activities by the direct method.

2. Evaluate the operating cash flow of Fence Up, Inc. Give the reason for your evaluation.