Changes in Current Operating Assets and Liabilities Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $16,700 $20,900 Inventory 57,800 52,100 Accounts payable 10,100 12,800 Dividends payable 281000 26,000 Adjust net income of $118,900 for changes in operating assets and liabilities to arrive at net cash flows from operating activities, 116,700 X 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. For example if accounts receivable has increased from last year to this year does that mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?