Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $30,000 $29,200 Inventory 75,800 76,500 Accounts payable 28,000 26,300 Dividends payable 21,000 23,000
Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $30,000 $29,200 Inventory 75,800 76,500 Accounts payable 28,000 26,300 Dividends payable 21,000 23,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![**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, 20Y2 | Dec. 31, 20Y1 |
|----------------|---------------|---------------|
| Accounts receivable | $30,000 | $29,200 |
| Inventory | $75,800 | $76,500 |
| Accounts payable | $28,000 | $26,300 |
| Dividends payable | $21,000 | $23,000 |
Adjust net income of $102,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
**$102,400** (marked with an 'X' indicating a mistake or correction)
This table highlights the changes in specific financial metrics between two consecutive years, demonstrating how these changes impact the net cash flow when using the indirect method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e43065a-701a-4089-b566-7b64895c40d3%2Fb9583833-428a-4a2c-b343-c472100029f6%2Fzjtnepm_processed.png&w=3840&q=75)
Transcribed Image Text:**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, 20Y2 | Dec. 31, 20Y1 |
|----------------|---------------|---------------|
| Accounts receivable | $30,000 | $29,200 |
| Inventory | $75,800 | $76,500 |
| Accounts payable | $28,000 | $26,300 |
| Dividends payable | $21,000 | $23,000 |
Adjust net income of $102,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
**$102,400** (marked with an 'X' indicating a mistake or correction)
This table highlights the changes in specific financial metrics between two consecutive years, demonstrating how these changes impact the net cash flow when using the indirect method.
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