2

Module 8 Problem Set Changes in Current Operating Assets and Liabilities-Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec 31, 2011 Accounts receivable $23,700 $23,500 Inventory 66,800 67,500 11,900 11,200 Accounts payable Dividends payable 27,000 25,000 Adjust net income of $115,800 for changes in operating assets and liabilities to arrive at net cash flow from operating activities