Brighton,Inc

question 46

Multiple Choice

Brighton,Inc. ,uses the indirect method to determine its net cash flows from operating activities.During the course of the year,the company's accounts receivable increased by $10,000 and its accounts payable decreased by $5,000.As a result of these two items,the calculation to determine cash flows from operating activities will be:

• A)increased by $5,000.
• B)decreased by $5,000.
• C)increased by $15,000.
• D)decreased by $15,000.

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