Changes in Current Operating Assets and Liabilities-Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 2012 Dec. 31, 20Y1 Accounts receivable $13,100 $12,000 Inventory 67,300 68,000 25,400 24,900 Accounts payable Dividends payable 15,000 16,000 Adjust net income of $74,900 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. 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