Changes in Current Operating Assets and Liabilities-Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $26,000 $25,200 Inventory 69,800 70,500 Accounts payable 27,300 26,700 Dividends payable 15,000 16,000 Adjust net income of $72,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. 72,000 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? Check My Work 3 more Check My Work uses remaining. Previous Previous Next >