1A.)

1B.)

Changes in Current Operating Assets and Liabilities-Indirect Method Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 2012 Dec 31, 2011 Accounts receivable $26,000 $24,700 Inventory 71,000 71,700 Accounts payable 21,800 Dividends payable 24,000 22,000 Adjust net income of $102,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. 21,300 Adjustments to Net Income Indirect Method Congress Corporation's accumulated depreciation equipment account increased by $4,400 while 2,900 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed again of $3,400 from the sale of investments Reconcile a net income of $50,200 to net cash flow from operating activities