hanges in Current Operating Assets and Liabilities

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

	Dec. 31, Year 2		Dec. 31, Year 1
Accounts receivable	$32,600		$26,700
Inventory	58,700		69,000
Accounts payable	12,600		15,500
Dividends payable	18,000		17,000

Adjust net income of $78,200 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.