Changes in current operating assets and liabilities-indirect method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Accounts receivable Inventory Accounts payable Dividends payable Dec. 31, 20Y2 Dec. 31, 20Y1 $13,300 $12,000 69,700 70,400 11,500 9,900 22,000 21,000 Adjust net income of $95 700 for changes in onerating assets and liabilities to arrive at net cash flows from operating activitie X Incorrect 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 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?
Changes in current operating assets and liabilities-indirect method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Accounts receivable Inventory Accounts payable Dividends payable Dec. 31, 20Y2 Dec. 31, 20Y1 $13,300 $12,000 69,700 70,400 11,500 9,900 22,000 21,000 Adjust net income of $95 700 for changes in onerating assets and liabilities to arrive at net cash flows from operating activitie X Incorrect 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 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Changes in current operating assets and liabilities-indirect method
Victor Corporation's comparative balance sheet for current assets and liabilities was as follows:
Accounts receivable
Inventory
Accounts payable
Dividends payable
Dec. 31, 20Y2
Dec. 31, 20Y1
$13,300
$12,000
69,700
70,400
11,500
9,900
22,000
21,000
Adjust net income of $95 700 for changes in onerating assets and liabilities to arrive at net cash flows from operating activitie
X
Incorrect
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 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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