Question: 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.

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 $32,600 $26,700
Inventory 58,700 69,000
Accounts payable 12,600 15,500
Dividends payable 18,000 17,000

Adjust net income of $78,200 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.

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