Cat Nap Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Cash Cat Nap Corp. Comparative Balance Sheet December 31, 2023 and 2022 2023 Total Assets $45,000 2022 $27.000 Increase/(Decrease) $18,000 Accounts Receivable 48,000 45,000 3,000 Merchandise Inventory 180.000 132.000 48.000 $273.000 $204.000 $69.000 How will the change in Accounts Receivable be shown on the statement of cash flows? O addition to net income under the operating activities section O negative cash flow under the investing activities section O positive cash flow under the financing activities section O subtraction from net income under the operating activities section

Cat Nap Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Cash Cat Nap Corp. Comparative Balance Sheet December 31, 2023 and 2022 2023 Total Assets $45,000 2022 $27.000 Increase/(Decrease) $18,000 Accounts Receivable 48,000 45,000 3,000 Merchandise Inventory 180.000 132.000 48.000 $273.000 $204.000 $69.000 How will the change in Accounts Receivable be shown on the statement of cash flows? O addition to net income under the operating activities section O negative cash flow under the investing activities section O positive cash flow under the financing activities section O subtraction from net income under the operating activities section

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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