Brighton,Inc.,uses the indirect method to determine its net cash flow from operating activities.During the course of the year,Brighton,Inc.'s accounts receivable increased by $10,000 and its accounts payable decreased by $5,000.As a result of these two items,the calculation of cash flow from operations will be:
A)increased by $5,000.
B)decreased by $5,000.
C)increased by $15,000.
D)decreased by $15,000.

Question

Quizplus · Accepted Answer

An increase in accounts receivable and a decrease in accounts payable both reduce cash flow from operations, resulting in a total decrease of $15,000.