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 $19,000 $16,000 Inventory 47,000 54,000 Accounts payable 20,400 23,700 Dividends payable 20,000 19,000 Adjust net income of $87,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $