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.

Question

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
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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