Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $24,100 $23,700 Inventory 49,300 50,000 Accounts payable 21,200 19,400 Dividends payable 30,000 28,000 Adjust net income of $126,200 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
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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 | |||
| $24,100 | $23,700 | |||
| Inventory | 49,300 | 50,000 | ||
| Accounts payable | 21,200 | 19,400 | ||
| Dividends payable | 30,000 | 28,000 |
Adjust net income of $126,200 for changes in operating assets and liabilities to arrive at net
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