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Fortune Corporations comparative balance sheet listed current assets and liabilities as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $7,500 $5,200 Inventory

Fortune Corporation’s comparative balance sheet listed current assets and liabilities as follows:

  1. Dec. 31, Year 2
  1. Dec. 31, Year 1
  1. Accounts receivable
  1. $7,500
  1. $5,200
  1. Inventory
  1. 11,500
  1. 16,000
  1. Accounts payable
  1. 4,300
  1. 5,200
  1. Dividends payable
  1. 4,000
  1. 3,000

  1. Adjust Year 2 net income of $65,000 for changes in current operating assets and liabilities to arrive at net cash flows from operating activities using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

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