1. Compute cash flows from operating activities by the indirect method. Also evaluate the operating cash flow of South Central Distributors. Give the reason for your evaluation.

Begin by completing the cash flows from operating activities.

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Net income Collection of dividend revenue.. Payment of interest Sales revenue Gain on sale of land Acquisition of land with cash $ 12,000 Depreciation expense $ 7,900 Decrease in current liabilities ... 22,000 Increase in current assets 201,000 other than cash 19,000 Payment of dividends 38,000 Payment of income tax 17,000 21,000 25,000 7,600 4,000 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: Net cash provided by (used for) operating activities Net income Collection of dividend revenue.. Payment of interest Sales revenue Gain on sale of land Acquisition of land with cash $ 12,000 Depreciation expense $ 7,900 Decrease in current liabilities ... 22,000 Increase in current assets 201,000 other than cash 19,000 Payment of dividends 38,000 Payment of income tax 17,000 21,000 25,000 7,600 4,000 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: Net cash provided by (used for) operating activities

Answer rating: 100% (QA)

Net Income 12000 AddLess Interest paid 22000 ... View the full answer