The accounting records of South Central Distributors, Inc., reveal the following:

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Compute cash flows from operating activities by the indirect method. Use the format of the operating activities section of Exhibit 9-6. Also evaluate the operating cash flow of South Central Distributors. Give the reason for your evaluation.

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Net income. Collection of dividend revenue. Payment of interest. Sales revenue... Gain on sale of land. Acquisition of land. $ 42,000 Depreciation... $ 6,000 7,100 12,000 307,000 Decrease in current liabilities.. 25,000 Increase in current assets other than cash. 29,000 26,000 Payment of dividends. 7,700 35,000 Payment of income tax 14,000