Changes in Current Operating Assets and liabilities -- Indirect Method Covington Corporation's comparative balance sheet for current assets and abilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $26,700 $25,900 Inventory 71,800 72,500 Accounts payable 19,600 18,600 Dividends payable 27,000 25,000 Adjust net income of $113,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities