Changes in Current Operating Assets and LiabilitiesIndirect 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 $14,000 $12,100 Inventory 62,400 71,700 Accounts payable 16,600 20,500 Dividends payable 22,000 24,000 Adjust net income of $110,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.