Changes in Current Operating Assets and Liabilities Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $34,900 $28,600 Inventory 53,000 59,500 Accounts payable 20,000 25,600 Dividends payable 21,000 20,000 Adjust net income of $88,900 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.