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Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows:   Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $16,300   $13,600   Inventory 51,600   60,000   Accounts payable 17,200   14,100   Dividends payable 15,000   16,000   Adjust net income of $74,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows:   Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $16,300   $13,600   Inventory 51,600   60,000   Accounts payable 17,200   14,100   Dividends payable 15,000   16,000   Adjust net income of $74,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

FINANCIAL ACCOUNTING
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

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

  Dec. 31, Year 2 Dec. 31, Year 1
Accounts receivable $16,300   $13,600  
Inventory 51,600   60,000  
Accounts payable 17,200   14,100  
Dividends payable 15,000   16,000  

Adjust net income of $74,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

 

This is the work I have thus far: 

13,600-16300= (2,700)    Add

60,000-51,600= 8,400    Deduct

14,500-17,200= (3,100)    Deduct

74,000-8,800= 65,700

I'am not sure if I am correct please help! Thank you!

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