Changes in Current Operating Assets and Liabilities - Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $21,800 $20,700 Inventory 64,600 65,300 Accounts payable 30,100 28,900 Dividends payable 19,000 20,000 Adjust net income of $91,700 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Feedback Check My Work Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash accounts receivable has increased from last year to this year does that mean the company has collected more cash or less cash? If accounts pa decreased does that mean the company has more cash or less cash? Learning Objective 2