The Following Items Were Reported on the Balance Sheets and Income

question 62

Multiple Choice

The following items were reported on the balance sheets and income statement for Flying Mullet Company: $\begin{array}{lr}\text { Accounts receivable, December } 31,2017 & \$ 85,000 \\\text { Accounts receivable, December } 31,2018 & 98,000 \\\text { Sales-2018 } & 750,000\end{array}$ How would the change in accounts receivable be reported in the Operating Activities section of the statement of cash flows under the indirect method?

• A)As an addition to sales
• B)As a deduction from sales
• C)As an addition to net income
• D)As a deduction from net income

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Definitions:

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An ancient Mesoamerican city located in what is now Mexico, famous for its vast Pyramid of the Sun and Pyramid of the Moon.