Changes in Current Operating Assets and Liabilities—Indirect
Method
Victor Corporation's comparative balance sheet for current assets and liabilities was as follows:
Adjust net income of $72,200 for changes in operating assets and
liabilities to arrive at net cash flow from operating
activities.
$
Victor Corporation's comparative balance sheet for current assets and liabilities was as follows:
| Dec. 31, Year 2 | Dec. 31, Year 1 | |||
| Accounts receivable | $16,000 | $18,800 | ||
| Inventory | 89,300 | 79,000 | ||
| Accounts payable | 21,900 | 19,200 | ||
| Dividends payable | 17,000 | 16,000 | ||
$
