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 $14,000 $13,800 Inventory 66,400 67,100 Accounts payable 27,600 27,200 Dividends payable 15,000 16,000 Adjust net income of $71,600 for changes in operating assets and abilities to arrive at net cash flow from operating activities