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 $24,000 $29,600 Inventory 60,500 52,600 Accounts payable 18,900 16,000 Dividends payable 22,000 24,000 Adjust net income of $107,300 for changes in operating assets and liabilities to arrive at net cash flow from operating activities