If C Co.'s trade receivables balance was $1,666 million in 2012 and $1,798 million in 2013, what would be the impact on the statement of cash flows?

Question

Quizplus · Accepted Answer

An increase in trade receivables balance means that C Co. has extended more credit to customers, resulting in an increase in accounts receivable. This represents a use of cash in operating activities, and thus a decrease in cash flow from operating activities. It does not affect cash flow from investing activities.

If C Co's Trade Receivables Balance Was $1,666 Million in 2012 and 2012