Walker,Inc The Change in Accounts Receivable Is Shown as a Negative

question 6

True/False

Walker,Inc.uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet:
$\begin{array}{c}\text {Walker, Inc.}\\\text {Comparative Balance Sheet}\\\text {December 31,2017 and 2016}\\\begin{array}{|l|r|r|r|}\hline &2017 & 2016 & \text { Increase/(Decrease) } \\\hline \text { Cash } & \$ 42,000 & \$ 25,000 & \$ 17,000 \\\hline \text { Accounts Receivable } & 32,000 & 55,000 & (23,000) \\\hline \text { Merchandise Inventory } & \underline{180,000} & \underline{123,000} & \underline{57,000} \\\hline \text { Total Assets } & \$ 254,00 & \$ 203,000 & \$ 51,000 \\\hline\end{array}\end{array}$ The change in Accounts Receivable is shown as a negative cash flow in the adjustments to net income.

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Definitions:

Macroeconomic Variables

Indicators or main aggregates considered in the analysis of an economy's overall performance, such as GDP, inflation, and unemployment rates.

Aggregate Demand

This concept refers to the complete spending on goods and services in a country during a specific period, reflecting the economy's overall demand.

Aggregate Supply

The aggregate amount of products and services that businesses intend to offer for sale in the market within a given timeframe.

Economic Fluctuations

Variations in the level of economic activity in an economy over a period of time, including phases of expansion and contraction.