Question: Brighton, Inc., uses the indirect method to determine its net cash flows from operating activities. During the course of the year, the company's accounts receivable

Brighton, Inc., uses the indirect method to determine its net cash flows from operating activities. During the course of the year, the company's accounts receivable increased by $10,400 and its accounts payable decreased by $5,200. As a result of these two items, the calculation to determine cash flows from operating activities will be:

decreased by $15,600.
increased by $15,600.
decreased by $5,200.
increased by $5,200.

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