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 $31,700 $27,600 Inventory 67,800 79,800 Accounts payable 24,000 20,700 Dividends payable 24,000 26,000 Adjust net income of $119,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities