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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, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,000 $19,300 Inventory 61,900 62,600 Accounts payable 21,000 20,800 Dividends payable 19,000 18,000 Adjust net income of $79,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. 81,100 x

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, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,000 $19,300 Inventory 61,900 62,600 Accounts payable 21,000 20,800 Dividends payable 19,000 18,000 Adjust net income of $79,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. 81,100 x

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,000 $19,300 Inventory 61,900 62,600 Accounts payable 21,000 20,800 Dividends payable 19,000 18,000 Adjust net income of $79,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $4 81,100 x Feedback V 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 increased from last year to this year does that 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: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, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,000 $19,300 Inventory 61,900 62,600 Accounts payable 21,000 20,800 Dividends payable 19,000 18,000 Adjust net income of $79,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $4 81,100 x Feedback V 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 increased from last year to this year does that 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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