Changes in Current Operating Assets and LiabilitiesIndirect Method

Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows:

	Dec. 31, Year 2		Dec. 31, Year 1
Accounts receivable	$21,400		$25,500
Inventory	83,700		74,700
Accounts payable	19,500		16,400
Dividends payable	21,000		19,000

Adjust net income of $86,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $