Textbook Problem

Changes in current operating assets and liabilities—indirect method

Huluduey Corporation’s comparative balance sheet for current assets and liabilities was as follows:

	Dec. 31,2016	Dec. 31,2015
Accounts receivable	$18,000	$14,400
Inventory	34,800	29,700
Accounts payable	27.600	20,700
Dividends payable	8,400	10,800

Adjust net income of $160,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.