Changes in Current Operating Ass Show Me How Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 $26,100 $25,900 79,200 79,900 13,100 12,900 21,000 20,000 Accounts receivable Inventory Accounts payable Dividends payable Adjust net income of $88,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. X Feedback Check My Work Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has i mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?
Changes in Current Operating Ass Show Me How Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 $26,100 $25,900 79,200 79,900 13,100 12,900 21,000 20,000 Accounts receivable Inventory Accounts payable Dividends payable Adjust net income of $88,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. X Feedback Check My Work Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has i mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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SO
SO
<
eBook
Changes in Current Operating Ass
Snow Me How
• Show Me How
Covington Corporation's comparative balance sheet for current assets and liabilities was as follows:
Dec. 31, 20Y2
Dec. 31, 20Y1
$26,100
79,200
13,100
21,000
Feedback
Accounts receivable
Inventory
Accounts payable
Dividends payable
Adjust net income of $88,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
X
$25,900
79,900
12,900
20,000
✓ Check My Work
Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has incr
mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?"
Transcribed Image Text:em Set
SO
SO
<
eBook
Changes in Current Operating Ass
Snow Me How
• Show Me How
Covington Corporation's comparative balance sheet for current assets and liabilities was as follows:
Dec. 31, 20Y2
Dec. 31, 20Y1
$26,100
79,200
13,100
21,000
Feedback
Accounts receivable
Inventory
Accounts payable
Dividends payable
Adjust net income of $88,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
X
$25,900
79,900
12,900
20,000
✓ Check My Work
Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has incr
mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?
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