How will the change in accounts receivable be reported in the operating activities section of the statement of cash flows? Manning Co. uses the indirect method to prepare the statement of cash flows. the following amounts are shown in its Dec. 31, 2013 financial statements. Dec. 31, 2013 Dec. 31,2012 Accounts receivable $663,000 $600,000. Cost of goods sold $1,800,000. Sales revenue $2,400,000. Accounts payable $255,000 $195,000. Inventory $270,000 $375,000. Salaries payable $45,000 $30,000. Salaries expenses $165,000 $144,000.