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

question 98

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.

---

Definitions:

Reading Level

A measure or assessment of an individual's reading ability or how complex a text is, usually defined by grade level or age group.

Bend At The Knees

A movement where the knees are flexed while keeping the back straight, usually advised to prevent injury during lifting.

Back Muscles

A group of muscles in the back that support the spine, assist in movement, and maintain posture.

Heavy Object

An item of significant weight, often requiring more than a person's physical capability to move or lift it.