S&C's records show Accounts Receivable amounted to $215,000 at the beginning of the year and $245,000 at the end of the year.Income reported on the Income Statement for the year was $300,000.The cash flow from operating activities on the cash flow statement using the indirect method is:

Question

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The increase in Accounts Receivable ($245,000 - $215,000 = $30,000) indicates that not all reported income was received in cash. Therefore, the cash flow from operating activities is $300,000 (income) - $30,000 (increase in Accounts Receivable) = $270,000.

S&C's Records Show Accounts Receivable Amounted to $215,000 at the Beginning