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

Net Income ........................................................................ $56,000

Depreciation Expense ................................................................ 8,000

Sales Revenue ....................................................................... 92,000

Decrease in current liabilities ........................................................ 30,000

Loss on sale of land .................................................................. 3,000

Increase in current assets other than Cash ......................................... 18,000

Acquisition of land .................................................................... 35,000

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 Harding & Associates. Give the reason for your evaluation.

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Tri-Core Industrial Coatings, Ino. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2016 Cash flows from operating aotivities: Net Income Adjustments to reconcile net income to net cash provided by operating activities: + Depreciation / amortization expense + Loss on sale of long-term assets - Gain on sale of long-term assets - Increases in current assets other than cash + Decreases in current assets other than cash + Increases in current liabilities - Decreases in current liabilities Net cash provided by (used for) operating activities Cash flows from investing activities: + Cash receipts from sales of long-term assets (investments, land, building, equipment, and so on) - Purchases of long-term assets = Net cash provided by (used for) investing activities Cash flows from financing activities: + Cash receipts from issuance of stock + Sale of treasury stock - Purchase of treasury stock + Cash receipts from issuance of notes or bonds payable (borrowing) - Payment of notes or bonds payable - Payment of dividends = Net cash provided by (used for) financing activities Net increase (decrease) in cash during the year* + Cash at December 31, 2015 Cash at December 31, 2016