Fortune Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $7,705 $5,000 Inventory 9,941 15,247 Accounts payable 3,818 6,093 Dividends payable 4,096 2,212 Adjust Year 2 net income of $58,037 for changes in operating assets and liabilities to arrive at cash flows from operating activities using the indirect method.

Fortune Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $7,705 $5,000 Inventory 9,941 15,247 Accounts payable 3,818 6,093 Dividends payable 4,096 2,212 Adjust Year 2 net income of $58,037 for changes in operating assets and liabilities to arrive at cash flows from operating activities using the indirect method.

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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