The accounting records of TaiRong Corporation reveal the following at its year-end July 31, 2020:

Required

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

2. Evaluate TaiRong Corporation’s operating cash flows as being either strong or weak.

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Acquisition of land.. Amortization . $ 444,000 Loss on sale of land . $ 60,000 156,000 Net income.. 288,000 Cash sales . 108,000 Payment of accounts payable. 576,000 Collection of accounts receivable.. 1,116,000 Payment of dividends . 84,000 Collection of dividend revenue.. 108,000 Payment of income tax. . 276,000 Payment of interest . Payment of salaries. 96,000 Decrease in current liabilities.. 192,000 Increase in current assets other 432,000 than cash. .. 252,000