Changes in Current Operating Assets and Liabilities-Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $15,200 $12,600 Inventory 68,900 79,200 11,000 Accounts payable Dividends payable 13,600 17,000 16,000 Adjust net income of $75,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities