Question

O Changes in current operating assets and liabilities-indirect method Instructions Amount Descriptions Reconciliation of Net Income Instructions Huluduey Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $32,350 $27,670 Inventory 18,640 15,960 Accounts payable 15,940 14,650 Dividends payable 51,460 48,000 Adjust net income of $213,480 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

Answer 1

$2,13,480 1 Net Income 2 Adjustments to reconcile net income to net cash flow from operations 3 Chnages in current operating assets and liabilities 4 Increase in accounts receivables 5 Increase in inventory 6 Increase in accounts payable 7 Net cash flow from operating activities $ -4,680 $ -2,680 $ 1.290 $2,07,410 Note: Dividends payable will fall under financing activities section Calculations: 213480 1 Net Income 2 Adjustments to reconcile net income to net cash flow from operations 3 Chnages in current operating assets and liabilities 4. Increase in accounts receivables 5 Increase in inventory 6 Increase in accounts payable 7 Net cash flow from operating activities =27670-32350 =15960-18640 =15940-14650 =SUM(B1:B6) Note: Dividends payable will fall under financing activities section For any queries or doubts related to format or any values please post in comment section, I would take that up.