Changes in Current Operating Assets and LiabilitiesIndirect 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	$14,700		$17,700
Inventory	72,600		64,800
Accounts payable	20,300		25,100
Dividends payable	18,000		20,000

Adjust net income of $92,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $