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

Dec. 31, Year 2 Dec. 31, Year 1

Accounts receivable $20,000 $24,100

Inventory 66,900 60,300

Accounts payable 15,700 18,300

Dividends payable 18,000 19,000

Adjust net income of $87,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.