Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $16,300 $13,600 Inventory 51,600 60,000 Accounts payable 17,200 14,100 Dividends payable 15,000 16,000 Adjust net income of $74,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $16,300 $13,600 Inventory 51,600 60,000 Accounts payable 17,200 14,100 Dividends payable 15,000 16,000 Adjust net income of $74,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 6MCQ
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Changes in Current Operating Assets and Liabilities—Indirect Method
Victor Corporation's comparative balance sheet for current assets and liabilities was as follows:
| Dec. 31, Year 2 | Dec. 31, Year 1 | |||
| $16,300 | $13,600 | |||
| Inventory | 51,600 | 60,000 | ||
| Accounts payable | 17,200 | 14,100 | ||
| Dividends payable | 15,000 | 16,000 |
Adjust net income of $74,500 for changes in operating assets and liabilities to arrive at net
This is the work I have thus far:
13,600-16300= (2,700) Add
60,000-51,600= 8,400 Deduct
14,500-17,200= (3,100) Deduct
74,000-8,800= 65,700
I'am not sure if I am correct please help! Thank you!
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