Accounts receivable arising from sales to customers amounted to $45,000 and $50,000 at the beginning and end of the year, respectively.Income reported on the income statement for the year was $160,000.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 increase in accounts receivable ($50,000 - $45,000 = $5,000) indicates that not all sales were collected in cash. Therefore, the cash flow from operating activities is $160,000 (income) - $5,000 (increase in receivables) = $155,000.

Accounts Receivable Arising from Sales to Customers Amounted to $45,000