Question: The Waterford Wax Company had the following current account activity last year.
Beginning Ending Beginning Ending
Cash $ 160 $ 333 Accts Pay $722 $2,084
Accts Rec 1,875 3,810 Accruals $217 456
Inventory 438 2,676
Curr Assets $2,473 $6,819 Curr Liab. $939 $2,540
a. Calculate and display the current account detail required for the Cash From Operating Activities section of the Statement of Cash Flows.
b. If you also knew that Waterford’s revenues had risen by 20% last year, would you be concerned about the firm’s financial health? Why? (Words only.)