Changes in Current Operating Assets and Liabilities—Indirect MethodHuluduey Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2Dec. 31, 20Y1Accounts receivable$17,500 $12,500 Inventory51,650 44,200 Accounts payable8,480 5,100 Dividends payable9,480 6,100 Adjust net income of $75,800 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.$fill in the blank 1

Operating activities include cash activities related to net income and daily operating routine activities. Net profit $75800 Less Increase in Account receivable ($5000) Less Increase in Inventory ($7450) Add Increase in Accounts payable $3380 Add Increase in Dividend payable $3380 Net Cash flow from operating activities $70080

Answered: Changes in Current Operating Assets and…

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

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

	Dec. 31, 20Y2	Dec. 31, 20Y1
Accounts receivable	$17,500		$12,500
Inventory	51,650		44,200
Accounts payable	8,480		5,100
Dividends payable	9,480		6,100

Adjust net income of $75,800 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
$fill in the blank 1

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