Question

Zwilling Corporation’s comparative balance sheet for current assets and liabilities was as follows:

Answer 1

Answer: $202,700

Explanation:

Given that,

                                  Dec. 31, Year 2                                  Dec. 31, Year 1

Accounts receivable      $27,830                                             $33,340

Inventory                         $18,140                                               $15,290

Accounts payable           $15,680                                              $13,780

Dividends payable          $49,220                                             $52,490

Adjust net income = $198,140

Net cash flow from operating activities:

= Net income + Decrease in Accounts receivable - Increase in inventory + Increase in accounts payable  

= $198,140 + $5,510 - $2,850 + $1,900

= $202,700