Homework SourseHuluduey Corporations comparative balance sheet for current
Huluduey Corporation’s comparative balance sheet for current assets and liabilities was as follows:
Adjust net income of $211,060 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.
| Dec. 31, Year 2 | Dec. 31, Year 1 | |
|---|---|---|
| Accounts receivable | $30,900 | $28,200 |
| Inventory | 17,850 | 15,940 |
| Accounts payable | 16,440 | 14,790 |
| Dividends payable | 52,900 | 50,680 |
Solution
Answers
--- Increase in Current Liabilities ‘or’ Decrease in Current Assets are ADDED to Net Income
---Decrease in Current Liabilities ‘or’ Increase in Current Assets are DEDUCTED from Net Income
Cash Flows from Operating Activities
Net Income
$ 2,11,060.00
Adjustments for changes in Operating Assets & Liabilities:
Increase in Accounts receivables
$ (2,700.00)
Increase in Inventory
$ (1,910.00)
Increase in Accounts Payable
$ 1,650.00
Increase in Dividends Payable
$ 2,220.00
$ (740.00)
Cash Flow (provided) by Operating Activities
$ 2,10,320.00
| Cash Flows from Operating Activities | ||
| Net Income | $ 2,11,060.00 | |
| Adjustments for changes in Operating Assets & Liabilities: | ||
| Increase in Accounts receivables | $ (2,700.00) | |
| Increase in Inventory | $ (1,910.00) | |
| Increase in Accounts Payable | $ 1,650.00 | |
| Increase in Dividends Payable | $ 2,220.00 | $ (740.00) |
| Cash Flow (provided) by Operating Activities | $ 2,10,320.00 |
