question 1\n2 pts\naccounts receivable arising from sales to customers amounted to $86,000 and $77,000 at…

question 1\n2 pts\naccounts receivable arising from sales to customers amounted to $86,000 and $77,000 at the beginning and end of the year, respectively. net income reported on the income statement for the year was $290,000. exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows if the indirect method is used is\n$299,000.\n$290,000.\n$280,000.\n$213,000.

question 1\n2 pts\naccounts receivable arising from sales to customers amounted to $86,000 and $77,000 at the beginning and end of the year, respectively. net income reported on the income statement for the year was $290,000. exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows if the indirect method is used is\n$299,000.\n$290,000.\n$280,000.\n$213,000.

Answer

Explanation:

Step1: Calculate change in accounts receivable

Beginning accounts receivable = $86,000, Ending accounts receivable = $77,000. Change = $77,000 - $86,000=-$9,000.

Step2: Adjust net income for change in accounts receivable

Net income = $290,000. Cash flows from operating activities = Net income+Decrease in accounts receivable. So, Cash flows from operating activities = $290,000 + $9,000.

Answer:

$299,000.