Accounts receivable arising from sales to customers amounted to $35,000 and $30,000 at the beginning and end of the year respectively. Revenue reported on the income statement for the year was $130,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is:
A) $100,000.
B) $115,000.
C) $165,000.
D) $135,000.

Question

Quizplus · Accepted Answer

The cash flows from operating activities is $135,000. That is, $130,000 plus the decrease in accounts receivable of $5,000.

Accounts Receivable Arising from Sales to Customers Amounted to $35,000