The accounting records of Rodeo Talent Agency reveal the following Net
The accounting records of Rodeo Talent Agency reveal the following:
Net Income ............... $30,000
Depreciation ............... 6,000
Sales Revenue ............... 10,000
Decrease in current liabilities ......... 24,000
Loss on sale of land ............ 6,000
Increase in current assets other than Cash ... 15,000
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 Rodeo Talent Agency. Give the reason for your evaluation.
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