Chapter 12, Problem 12E

Inferring Balance Sheet Changes from the Cash Flow Statement (Indirect Method)

A statement of cash flows contained the following information:

Operating Activities
Net Income	$14,013
Depreciation	1,027
Changes in current assets and current liabilities
Accounts Receivable	(2,142)
Inventory	596
Accounts Payable	6,307
Accrued Liabilities	(1,217)
Net Cash Provided by Operations	$18,584

Required:

Determine whether the following account balances increased (I) or decreased (D) during the period: (a) Accounts Receivable, (b) Inventories, (c) Accounts Payable, and (d) Accrued Liabilities.