James Corporation’s comparative balance sheet for current assets and liabilities was as follows:
Dec. 31, 2014 Dec. 31, 2013
Accounts receivable 7,500 5,200
Inventory 11,500 16,000
Accounts payable 4,300 5,200
Dividends payable 4,000 3,000
Adjust 2014 net income of $60,000 for changes in operating assets and liabilities to arrive at cash flows from operating activities using the indirect method. Show all work.
net income 60000
add decrease in accounts receivables 1300
less increase in inventory [ 4500]
add increase in accounts payable 1200
less decrease in dividends payable [ 1000]
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