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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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, 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.
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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