12.2 Preparing the Statement of Cash Flows-Indirect Method Gilliam Industries records revenue of $6.4 million for an accounting period. In that same accounting period, they have a beginning balance of $392,000 and an ending balance of $439,000 in the Accounts Receivable account. How should the cash flows from operating activities be adjusted to account for these items? Why? Assume Gilliam uses the indirect method. Using the indirect method, Gilliam will only have to adjust for the change in Accounts Receivable, resulting in a $47,000 decrease in cash flows from operating activities. Using the indirect method, Gilliam will have to adjust for both the revenue and the change in Accounts Receivable, resulting in a $6,447,000 increase in cash flows from operating activities. Using the indirect method, Gilliam will only have to adjust for the change in Accounts Receivable, resulting in a $47,000 increase in cash flows from operating activities. Using the indirect method, Gilliam will have to adjust for both the revenue and the change in Accounts Receivable, resulting in a $6,353,000 increase in cash flows from operating activities