Changes in current operating assets and liabilities-indirect method
Phelps Corporation's comparative balance sheet for current assets and liabilities were as follows:
|
Dec. 31, 2013
|
Dec. 31, 2012
|
|
Accounts receivable
|
$22,500
|
$27,000
|
|
Inventory
|
15,000
|
12,900
|
|
Accounts payable
|
13,500
|
11,850
|
|
Dividends payable
|
41,250
|
44,250
|
Adjust net income of $240,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.