#3 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, 20Y1 $15,100 $14,600 72,100 72,800 17,800 16,800 22,000 24,000 Accounts receivable Inventory Accounts payable Dividends payable Adjust net income of $110,700 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. X Feedback Check My Work 80 F3 E Check My Work Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on accounts receivable has increased from last year to this year does that mean the company has collected more cash or less cash? If accour decreased does that mean the company has more cash or less cash? D SA 4 $ 4 Q F4 R LL 67 5 % 5 F5 T G 6 MacBook Air C F6 Y H & 7 2 F7 U 8 J DII F8 - ( 9 K Email Instructor F9 0 ) 0 Save and Exit Sub 7 F10 P

Ohanges in Current Operating Assets and Llablities-lnatrest Mothod Covingtesh Corporations comptrabive balance sheet for current anvets and labines was as tolsm: Adjust net income of $116,700 for changes in egerating arsets and labilines we amber at net cant flow frem operateg ativities. x Testack roveaterines Once you have calculated the changes in the curnthe operating essets and labilen setermine ahat impuct thase chanpes would have on acoounts receivabie ths increased frum iast year to this year does that mean the company has coliected more cosh er less cash? If accour decreased does that mean the cempaty thes more cash or less cash