Precision Tool 2012 Income Statement Net sales $36,408 Less: Cost of goods sold 28,225 Less: Depreciation 1,760 Earnings before interest and taxes 6,423 Less: Interest paid 510 Taxable Income $5,913 Less: Taxes 2,070 Net income $3,843 Precision Tool 2011 and 2012 Balance Sheets 2011 2012 2011 2012 Cash $2,060 $1,003 Accounts payable $7,250 $8,384 Accounts rec. 3,411 4,218 Long-term debt 9,800 11,500 Inventory 18,776 21,908 Common stock 15,000 17,500 Total $24,247 $27,129 Retained earning 6,357 3,825 Net fixed assets 14.160 14,080 Total assets $38,407 $41,209 Total liab & equity $38,407 $41,209 How does accounts receivable affect the statement of cash flows for 2012? A. a use of $4,218 of cash as an investment activity B. a source of $807 of cash as an operating activity C. a use of $4,218 of cash as a financing activity D. a source of $807 of cash as an investment activity E. a use of $807 of cash as an operating activity