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, 2012 Dec. 31, 20Y1 Accounts receivable $19,700 $18,900 Inventory 60,400 61,100 Accounts payable 17,700 16,300 Dividends payable 29,000 27,000 Adjust net income of $123,800 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. X Feedback Check My Work Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has increased from last year to this year does that mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash