Accounts receivable arising from sales to customers amounted to ¥800,000 and ¥700,000 at the beginning and end of the year, respectively.Income reported on the income statement for the year was ¥2,800,000.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 (¥800,000 - ¥700,000 = ¥100,000) indicates that cash collected from customers was more than the sales revenue recognized. Therefore, the cash flows from operating activities would be the income reported plus the decrease in accounts receivable: ¥2,800,000 + ¥100,000 = ¥2,900,000.

Accounts Receivable Arising from Sales to Customers Amounted to ¥800,000