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

Requirement
1. Compute cash flows from operating activities by the direct method. Also evaluate One Stops operating cash flow. Give the reason for yourevaluation.

Transcribed Image Text:

$20,000 and wages.$40,000 Payment of income tax...8,000 Payment of salaries 25,000 Collection of dividend Depreciation Increase in current .7,000 13,000 36,000 .. 2,000 35,000 liabilities 27,000 Payment of i Cash sale Increase in current assets Payment of dividends Collection of accounts receivable other than cash.....28,000 Gain on sale of land 6,000 Acquisition of land Payment of accounts 80,000 payable 51,000