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 $26,800 $22,500 Inventory 68,900 77,400 Accounts payable 19,800 24,100 Dividends payable 19,000 21,000 Adjust net income of $96,300 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.