Changes in Current Operating Assets and Liabilities—Indirect Method Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $22,400 $18,500 Inventory 66,900 77,800 Accounts payable 30,400 26,400 Dividends payable 22,000 20,000 Adjust net income of $89,300 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.$
Changes in Current Operating Assets and Liabilities—Indirect Method Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $22,400 $18,500 Inventory 66,900 77,800 Accounts payable 30,400 26,400 Dividends payable 22,000 20,000 Adjust net income of $89,300 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.$
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Statement Of Cash Flows
Section: Chapter Questions
Problem 13.3BE
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Changes in Current Operating Assets and Liabilities—Indirect Method
Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows:
| Dec. 31, Year 2 | Dec. 31, Year 1 | |||
| Accounts receivable | $22,400 | $18,500 | ||
| Inventory | 66,900 | 77,800 | ||
| Accounts payable | 30,400 | 26,400 | ||
| Dividends payable | 22,000 | 20,000 |
Adjust net income of $89,300 for changes in operating assets and liabilities to arrive at net
$
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