Changes in current operating assets and liabilitiesindirect method

InstructionsAmount DescriptionsReconciliation of Net Income

Instructions

Huluduey Corporation's comparative balance sheet for current assets and liabilities was as follows:

Dec. 31, Year 2Dec. 31, Year 1Accounts receivable$32,170$26,970Inventory18,46016,000Accounts payable16,64014,790Dividends payable54,17049,040Adjust net income of $205,540 for changes in operating assets and liabilities to arrive at netcash 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.