Brighton,Inc. ,uses the indirect method to determine its net cash flows from operating activities.During the course of the year,the company's accounts receivable increased by $10,000 and its accounts payable decreased by $5,000.As a result of these two items,the calculation to determine cash flows from operating activities will be:

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An increase in accounts receivable and a decrease in accounts payable both reduce cash flows from operating activities. The net effect is a decrease of $15,000.