Changes in Current Operating Assets and Liabilities Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1. Accounts receivable $21,800 $27,300 Inventory 77,000 67,500 Accounts payable 29,600 24,900 Dividends payable 22,000 21,000 Adjust net income of $93,800 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.

Changes in Current Operating Assets and Liabilities Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1. Accounts receivable $21,800 $27,300 Inventory 77,000 67,500 Accounts payable 29,600 24,900 Dividends payable 22,000 21,000 Adjust net income of $93,800 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9BE

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Changes in current operating assets and liabilities-indirect method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Dec. 31, Accounts 20Y2 20Y1 $25,300 $24,900 receivable Inventory 67,200 67,900 Accounts 28,100. 26,900 payable Dividends 18,000 payable 17,000 Adjust net income of $76,400 for changes in operating assets and liabilities to arrive at net cash flows from operating activities. Check My Work 5 more Check My Work uses remaining.
Changes in various accounts and gains and losses on the sale of assets during the year for Argon Companyare given below:Item AmountAccounts receivable ............................... $90,000 decreaseAccrued interest receivable ................... $4,000 increaseInventory ................................................ $120,000 increasePrepaid expenses .................................. $3,000 decreaseAccounts payable ................................... $65,000 decreaseAccrued liabilities ................................... $8,000 increaseDeferred income taxes payable ............. $12,000 increaseSale of equipment .................................. $7,000 gainSale of long-term investments ............... $10,000 lossRequired:Prepare an answer sheet using the following column headings:Item Amount Add DeductFor each item, place an X in the Add or Deduct column to indicate whether the dollar amount should beadded to or deducted from net income under the indirect method when computing the…
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Changes in current operating assets and liabilities-indirect method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 2012 Dec. 31, 20Y1 Accounts receivable Inventory Accounts payable Dividends payable $28,900 57,700 25,300 21,000 $28,500 58,400 24,700 22,000 Adjust net income of $100,400 for changes in operating assets and liabilities to arrive at net cash flows from operating activities. X
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Changes in current operating assets and liabilities-indirect method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 2012 Dec. 31, 20Y1 Accounts receivable $25,400 $24,400 Inventory 59,400 60,100 Accounts payable 17,100 15,600 Dividends payable 19,000 18,000 Adjust net income of $80,500 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.