Question

Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $18,900 $18,700 Inventory 64,600 65,300 Accounts payable 20,700 20,300 Dividends payable 27,000 25,000 Adjust net income of $111,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

Answer 1

Net cash flow from operating activities is $112,500.

Step-by-step explanation:

CASH FLOWS FROM OPERATING ACTIVITIES $

Net Income 111,600

Adjustments to reconcile net income to

net cash provided by operating activities:

(Increase) Decrease in Current Assets:

Accounts Receivables (200)

Inventory 700

Increase (Decrease) in Current Liabilities:

Accounts Payable 400

NET CASH PROVIDED BY OPERATING ACTIVITIES 112,500