Fortune Corporation's Comparative Balance Sheet for Current Assets and Liabilities

question 21

Essay

Fortune Corporation's comparative balance sheet for current assets and liabilities was as follows:
$\begin{array}{|l|r|r|}\hline &\text { Dec. 31, Year 2} & \text { Dec. 31, Year 1}\\\hline\text { Accounts receivable } & \$ 7,500 & \$ 5,200 \\\hline \text { Inventory } & 11,500 & 16,000 \\\hline \text { Accounts payable } & 4,300 & 5,200 \\\hline \text { Dividends payable } & 4,000 & 3,000\\\hline\end{array}$ Adjust Year 2 net income of $65,000 for changes in operating assets and liabilities to arrive at cash flows from operating activities using the indirect method.

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