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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, 20Y2 Dec. 31, 20Y1
AR $25,300 $24,200
Inventory 77,100 77,800
AP 23,500 23,100
Dividends payable 24,000 22,000
Problem 1: Adjust net income of $98,800 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
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