The Waterford Wax Company had the following current account activity last year.
Beginning Ending Beginning Ending
|
Cash
|
$ 160
|
$ 333
|
Accounts payable
|
$722
|
$2,084
|
|
Accounts receivable
|
1,875
|
3,810
|
Accruals
|
217
|
456
|
|
Inventory
|
438
|
2,676
|
|
|
|
|
Current assets
|
$2,473
|
$6,819
|
Current liabilities
|
$939
|
$2,540
|
a. Calculate and display the current account detail required for the Cash from Operating Activities section of the statement of cash flows.
b. If you also knew that Waterford's revenues had risen by 20% last year, would you be concerned about the firm's financial health? Why? (Words only.)