Changes in Current Operating Assets and Labilities -- Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $14,000 $13,100 Inventory 50,500 51,200 Accounts payable 12,300 11,700 Dividends payable 27,000 25,000 Adjust net income of $113,400 for changes in operating assets and liabilities to arrive at net cash flow from operating activities