Ive tried asking this twice and neither time has the answer been accepted. Please, assist me! Changes in Current Operating Assets and Liabilities—Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,000 $19,300 Inventory 61,900 62,600 Accounts payable 21,000 20,800 Dividends payable 19,000 18,000 Adjust net income of $79,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $fill in the blank 1 Feedback Area Feedback Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has increased from last year to this year does that mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?
Ive tried asking this twice and neither time has the answer been accepted. Please, assist me! Changes in Current Operating Assets and Liabilities—Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,000 $19,300 Inventory 61,900 62,600 Accounts payable 21,000 20,800 Dividends payable 19,000 18,000 Adjust net income of $79,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $fill in the blank 1 Feedback Area Feedback Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has increased from last year to this year does that mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ive tried asking this twice and neither time has the answer been accepted. Please, assist me!
Changes in Current Operating Assets and Liabilities—Indirect Method
Blue Circle Corporation's comparative
| Dec. 31, 20Y2 | Dec. 31, 20Y1 | |||
| $20,000 | $19,300 | |||
| Inventory | 61,900 | 62,600 | ||
| Accounts payable | 21,000 | 20,800 | ||
| Dividends payable | 19,000 | 18,000 |
Adjust net income of $79,900 for changes in operating assets and liabilities to arrive at net
$fill in the blank 1
Feedback Area
Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has increased from last year to this year does that mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?
Transcribed Image Text:Changes in Current Operating Assets and Liabilities-Indirect Method
Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows:
Dec. 31, 20Y2
Dec. 31, 20Y1
Accounts receivable
$20,000
$19,300
Inventory
61,900
62,600
Accounts payable
21,000
20,800
Dividends payable
19,000
18,000
Adjust net income of $79,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
$4
81,100 x
Feedback
V Check My Work
Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would
have on cash. For example if accounts receivable has increased from last year to this year does that mean the company has collected
more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?
Transcribed Image Text:Changes in the Operating Assets and Liabilities -
$1,200.
Explanation -
a. Increase in Accounts Receivable - In the current question accounts receivables has increased by 700
from the previous year. This shows company has not collected the amount means there is less cash.
hence deducted from the net income.
b. Decrease in Inventory - Decrease in inventory results in sale happen and cash received from the
transaction. Hence cash increased from this transaction.
c. Increase in Accounts Payable - Increase in Accounts payable means company has not paid the amount
due. Results in increase in cash due to non payment.
d. Increase in Dividend Payable - Dividend Payable increase means company has declared but not paid
the dividend. The difference from previous year should be added back in the cash.
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