Corporation formats operating cash flows using the indirect method.

Cramer's Income Statement for 2018

Sales revenue $170,000

Gain on sale of equipment 10,000* $180,000

Cost of goods sold $110,000

Depreciation 7,500

Other operating expenses 27,000 144,500

Net income $35,500

* The book value of equipment sold during 2018 was $22,000.

How do accounts receivable affect CramerCramer's cash flows from operating activities for 20182018?

Cramer's Comparative Balance Sheets

December 31, 2018 and 2017

2018 2017 2018 2017

Cash $3,500 $2,000 Accounts payable $7,000 $8,000

Accounts receivable 6,000 11,000 Accrued liabilitie 9,000 1,000

Inventory 8,000 7,000 Common stock 20,000 10,000

Plant and equipment, net 89,000 71,000 Retained earnings 70,500 72,000

$106,500 $91,000 $106,500 $91,000

* The book value of equipment sold during 2018 was $22,000.

A.They increase cash provided by operating activities.

B.They don't because accounts receivable result from investing activities.

C.They don't because accounts receivable result from financing activities.

D.They decrease cash provided by operating activities.