Changes in Current Operating Assets and Liabilities-Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $19,900 $24,600 Inventory 68,900 61,500 Accounts payable 12,500 15,200 Dividends payable 24,000 22,000 Adjust net income of $101,400 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. 99,400 X
Changes in Current Operating Assets and Liabilities-Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $19,900 $24,600 Inventory 68,900 61,500 Accounts payable 12,500 15,200 Dividends payable 24,000 22,000 Adjust net income of $101,400 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. 99,400 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Changes in Current Operating Assets and Liabilities-Indirect Method
Covington Corporation's comparative balance sheet for current assets and liabilities was as follows:
Dec. 31, Year 2 Dec. 31, Year 1
Accounts receivable
$19,900
$24,600
Inventory
68,900
61,500
Accounts payable
12,500
15,200
Dividends payable
24,000
22,000
Adjust net income of $101,400 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
99,400 X
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