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

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

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Payment of salaries and wagcs Depreciation expense Decrcasc in current S$40,000 16,000 Payment of income tax 23,000 Collection of dividend $47,000 revenIC 12,000 ..8,000 . 73,000 7,000 25,000 18,000 Pa Cash sales.. Increasc in current asscts other than cash 21,000Gain on sale of land Payment of dividends.... 9,000 Acquisition of land with cash... Collection of accounts Payment of accounts receivable.... 86,000 payable....