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Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows:   Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $16,000 $15,200     Inventory 74,400 75,100     Accounts payable 25,800 24,900     Dividends payable 15,000 16,000     Adjust net income of $74,100 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows:   Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $16,000 $15,200     Inventory 74,400 75,100     Accounts payable 25,800 24,900     Dividends payable 15,000 16,000     Adjust net income of $74,100 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
Problem 1Q
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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 $16,000 $15,200    
Inventory 74,400 75,100    
Accounts payable 25,800 24,900    
Dividends payable 15,000 16,000    

Adjust net income of $74,100 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

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