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 Inventory Accounts payable Dividends payable Adjust net income of $74,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities $20,500 81,200 13,900 15,000 $25,900 70,600 16,400 16,000