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

Requirement
1. Compute cash flows from operating activities by the indirect method. Use the format of the operating activities section of Exhibit 12-6. Also evaluate the operating cash flow of Capitol Distributors. Give the reason for yourevaluation.

Transcribed Image Text:

19,000 Depreciation expense.... 7,000 Payment of interest.... Increase in current asscts Payment of dividends 29,000 7,300 . 8,000 it8,000 Paymenter tn 38,000 Payment