Answered: eivable nventory December 31, 2025 and…

eivable nventory December 31, 2025 and 2024 2025 2024 $45,000 48,000 180,000 $273,000 $27,000 45,000 132,000 $204,000 Increase/(Decrease) $18,000 3,000 48,000 $69,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 16CE

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8. Help me selecting the right answer. Thank you

Georgia Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
Georgia Corp.
Comparative Balance Sheet
December 31, 2025 and 2024
2025
2024
Cash
Accounts Receivable
Merchandise Inventory
Total Assets
$45,000
48,000
180,000
$273,000
$27,000
45,000
132,000
$204,000
Increase/(Decrease)
$18,000
3,000
48,000
$69,000
How will the change in Accounts Receivable be shown on the statement of cash flows?
addition to net income under the operating activities section
negative cash flow under the investing activities section
positive cash flow under the financing activities section
subtraction from net income under the operating activities section

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