Changes in current operating assets and liabilities- indirect method

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 $17,300 $16,900 Inventory 50,300 51,000 Accounts payable 14,500 13,800 Dividends payable 21,000 22,000 Adjust net income of $100,200 for changes in operating assets and liabilities to arrive at net cash flows from operating activities. 100,800 x Feedback Check My Work Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has increased from last year to this year does that mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash