Changes in Current Operating Assets and Liabilities-Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $26,000 $25,100 Inventory 74,100 74,800 Accounts payable 12,800 11,300 Dividends payable 23,000 25,000 Adjust net income of $115,000 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 Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $26,000 $25,100 Inventory 74,100 74,800 Accounts payable 12,800 11,300 Dividends payable 23,000 25,000 Adjust net income of $115,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 3BE

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