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, 2019 and 2018
2019 2018 Increase / (Decrease)
Cash $45,000 $27,000 $18,000
Accounts Receivable 48,000 45,000 3,000
Merchandise Inventory 180,000 132,000 48,000
Total Assets $273,000 $204,000 $69,000
How will the change in Accounts Receivable be shown on the statement of cash flows?
A) subtraction from net income under the operating activities section
B) positive cash flow under the financing activities section
C) negative cash flow under the investing activities section
D) addition to net income under the operating activities section
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