Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,800 $19,900 Inventory 72,000 72,700 Accounts payable 20,700 19,800 Dividends payable 17,000 18,000 Adjust net income of $81,300 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,800 $19,900 Inventory 72,000 72,700 Accounts payable 20,700 19,800 Dividends payable 17,000 18,000 Adjust net income of $81,300 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, 20Y2 | Dec. 31, 20Y1 | |||
| $20,800 | $19,900 | |||
| Inventory | 72,000 | 72,700 | ||
| Accounts payable | 20,700 | 19,800 | ||
| Dividends payable | 17,000 | 18,000 |
Adjust net income of $81,300 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
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