Fortune Corporation’s comparative balance sheet listed current assets and liabilities as follows:

	Dec. 31, Year 2		Dec. 31, Year 1
Accounts receivable	$7,500		$5,200
Inventory	11,500		16,000
Accounts payable	4,300		5,200
Dividends payable	4,000		3,000

1. 
   
2. Adjust Year 2 net income of $65,000 for changes in current operating assets and liabilities to arrive at net cash flows from operating activities using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Answer rating: 100% (QA)

Calculate the net cash flows from operating activities using the indirect method Give... View the full answer