The accounting records of Mid West 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 Mid West Distributors. Give the reason for yourevaluation.

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Net income $10,000 Depreciati $12,000 Payment of i Sales revenue 17,000 206,000 Increase in current assets Gain on sale of land. Acquisition of land ,000 38,000 25,000 7,300 Payment of income tax4,000 other than cash t of dividends