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, 20Y2 Accounts receivable $20,200 Inventory 52,100 Accounts payable Dividends payable 22,400 25,000 Dec. 31, 20Y1 $19,400 52,800 22,200 24,000 Adjust net income of $107,000 for changes in operating assets and liabilities to arrive at net cash flows from operating activities. Feedback X 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 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?