Question: Georgia Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Georgia Corp.

Georgia Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
Georgia Corp.
Comparative Balance Sheet
December 31, 2025 and 2024
2025
2024
Increase/ (Decrease)
Cash
$45,000
$27,000
$18,000
Accounts Receivable
48,000
45,000
3,000
Merchandise Inventory
180,000
132,000
48,000
Total Assets
$273,000
$204,000
$69,000
How will the change in Accounts Receivable be shown on the statement of cash flows?
A.
negative cash flow under the investing activities section
B.
positive cash flow under the financing activities section
C.
subtraction from net income under the operating activities section
D.
addition to net income under the operating activities section

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