The accounting records of Princeton Pharmaceuticals, Inc., reveal the following:

Requirement
1. Compute cash flows from operating activities by the direct method. Also evaluate Princeton€™s operating cash flow. Give the reason for yourevaluation.

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Payment of salaries $60,000 35,000 Payment of income tax. 24,000 Net i and wages Depreciat Decrease in current 20,000 Collection of dividend 10,000 liabilities...22,000 Payment of interest.17,000 33,000 6,000 . 38,000 revenIc Increase in current assets Cash sa other than cash. Payment of dividends Collection of accounts receivable 23,000 Loss on sale of land .. Acquisition of land Payment of accounts 7,000 50,000 payable... 58,000