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	$14,300		$12,300
Inventory	58,200		66,900
Accounts payable	24,800		21,600
Dividends payable	24,000		26,000

Adjust net income of $116,400 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $fill in the blank 1