The accounting records of Perry & Associates, Inc., reveal:

Net Income ................................................................ $25,000

Depreciation Expense .......................................................... 3,000

Sales Revenue ................................................................ 83,000

Decrease in current liabilities ................................................. 24,000

Loss on sale of land ........................................................... 5,000

Increase in current assets other than Cash ................................ 11,000

Acquisition of land ............................................................ 42,000

Requirements

1. Compute cash flows from operating activities by the indirect method. Use the format of the operating activities section shown in Exhibit 11-3.

2. Evaluate the operating cash flow of Perry & Associates, Inc. Give the reason for your evaluation?