Changes in Current Operating Assets and Liabilities Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $14,900 $12,500 Inventory 58,900 66,200 Accounts payable 22,100 19,200 Dividends payable 20,000 19,000 Adjust net income of $86,600 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.