Accounts receivable arising from sales to customers amounted to $85,000 and $75,000 at the beginning and end of the year, respectively.Income reported on the income statement for the year was $285,000.Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

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The decrease in accounts receivable ($85,000 - $75,000 = $10,000) indicates that cash collected from customers was $10,000 more than the sales revenue recognized. Therefore, the cash flows from operating activities would be $285,000 (income) + $10,000 (decrease in receivables) = $295,000.

Accounts Receivable Arising from Sales to Customers Amounted to $85,000