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

Requirement
1. Prepare cash flows from operating activities using the direct method. Also evaluate Stanley's operating cash flow. Give the reason for your evaluation.

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$60,000 $ 38,000 Payment of income tax. 24,000 Payment of salaries Depreciation expense ..26,000 Collection of dividend increase in current 8,000 18,000 revenue liabilities... 5,000 Payment of interest... Increase in current assets Cash sales... other than cash... 6,000 33,000 15,000 Loss on sale of land Payment of dividends Collection of accounts 4,000 Acquisition of land with cash Payment of accounts payable eivable. 12 125,000 .53,000