Changes in Current Operating Assets and Liabilities—Indirect MethodMohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2Dec. 31, 20Y1Accounts receivable$29,800 $29,100 Inventory67,600 68,300 Accounts payable18,500 17,300 Dividends payable18,000 19,000 Adjust net income of $86,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.$fill in the blank 1

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Changes in Current Operating Assets and Liabilities—Indirect Method

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

	Dec. 31, 20Y2	Dec. 31, 20Y1
Accounts receivable	$29,800		$29,100
Inventory	67,600		68,300
Accounts payable	18,500		17,300
Dividends payable	18,000		19,000

Adjust net income of $86,000 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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