If C Co.'s trade receivables balance was $1,666 million in 2011 and $1,798 million in 2012,what would be the impact on the statement of cash flows?
A)A decrease in cash flow from investing activities
B)An increase in cash flow from operating activities
C)An increase in cash flow from investing activities
D)A decrease in cash flow from operating activities

Question

Quizplus · Accepted Answer

An increase in trade receivables indicates that more sales were made on credit rather than cash. This would result in a decrease in cash flow from operating activities as cash was not received at the time of the sale.

If C Co's Trade Receivables Balance Was $1,666 Million in 2011 and 2011