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 $23,100 $29,200 51,700 Inventory 57,400 12,100 14,700 Accounts payable Dividends payable 21,000 19,000 Adjust net income of $84,300 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $ 85,100 Feedback 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 if 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