Adjust net income of for changes in operating assets

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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, 20Y2

Dec. 31, 20Y1

Accounts receivable

$29,700

$28,800

Inventory

59,100

59,800

Accounts payable

19,400

18,000

Dividends payable

22,000

21,000

Adjust net income of $94,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

Reference no: EM133176347

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