Changes in Current Operating Assets and Liabilities-Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 $20,000 56,800 19,300 17,000 Accounts receivable Inventory Accounts payable Dividends payable Adjust net income of $75,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $16,400 63,600 16,600 16,000 62,500X

Question

I've tried this problem twice and keep getting the wrong answer. The first time I did it I got 70,100 and now the second time I got 62,500. How do I do this? Thanks!

Changes in Current Operating Assets and Liabilities-Indirect Method
Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows:
Dec. 31, Year 2 Dec. 31, Year 1
$20,000
56,800
19,300
17,000
Accounts receivable
Inventory
Accounts payable
Dividends payable
Adjust net income of $75,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
$16,400
63,600
16,600
16,000
62,500X

Image Transcription

Changes in Current Operating Assets and Liabilities-Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 $20,000 56,800 19,300 17,000 Accounts receivable Inventory Accounts payable Dividends payable Adjust net income of $75,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $16,400 63,600 16,600 16,000 62,500X

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