Financial Analysts and Investors respond favorably when they observe that a large decrease in Accounts Receivable was the primary factor causing cash flow from operations to be much larger than net income because:

a.They infer that the firm is selling more goods on account in the current period rather than in cash.

b.They infer that the firm is not selling as many goods and services on account in the current period as compared to prior periods.

c.They infer that the firm is maintaining their cash collections procedures, but they sold more goods and services on account in the current period as compared to prior periods.

d.They infer that credit sales remained steady in the current period as compared to prior periods, but the firm improved their cash collection procedures.