Tupperware Brands Corporation is engaged in the marketing, manufacture, and sale of design-centric preparation, storage and serving solutions for the kitchen and home and beauty products through international brands. Assume that two recent years produced a combination of declining sales revenue and net income, culminating in a net income of only $12,400 (all numbers in thousands). Yet Tupperware was able to report positive cash flows from operations in the current year of $87,400. Contributing to that positive cash flow was the change in accounts receivable. The current and prior years’ balance sheets reported the following:

Required:
1. On the current year’s cash flow statement (indirect method), how would the change in accounts receivable affect cash flow from operations? Explain why it would have this effect.
2. Explain how declining sales revenue often leads to 

(a) Declining accounts receivable 

(b) Cash collections from customers being higher than sales revenue.

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Accounts receivable, net of allowances amounts in thousands Current Year $110,700 Prior Year $144,700