The accounting records of Greggory Pharmaceuticals, Inc., reveal the following:

Requirement
1. Compute cash flows from operating activities by the direct method. Also evaluate Greggory€™s operating cash flow. Give the reason for yourevaluation.

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Payment of salaries $50,000 20,000 Net income S 44,000 Payment of income tax... 27,000 Collection of dividend and wages Depreciation expense.. 14,000 9,000 51,000 ...3,000 12,000 Acquisition of land with cash. 38,000 Increase in cuurrent revenue liabilities..20,000 Payment of interest Increase in current assets Cash s other than cash. 24,000 G on sale of land Payment of dividends.. Collection of accounts Payment of accounts receivable 119,000 payable 63,000