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	$27,500		$23,500
Inventory	55,600		63,200
Accounts payable	12,400		15,100
Dividends payable	15,000		16,000

Adjust net income of $73,300 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.