QUESTION 21 Use the following excerpt from the ABC Company statement of cash flows to answer questions 18 through 21 regarding an analysis of the cash from operating activity section. 016 Nat income (loss 69,300 75,400 Restructuring and impairment charges Defetred income tax benefit (9.600) 100) 1,800 Increase [decrease) in cash resuing rom in: Accounts reecivabic 18,300 Accounts payab 5.600 13.600 9.200 et cash provided Which of the following statements is true with regard to ABC Company? Depreciation and restructuring and impairment charges are the cause of the declining cash flow in 2016. The declining cash flow from operations from 2014 to 2016 is a result of declining inventories and declining accounts receivable. The analyst would not be concerned about the net loss in 2016 since the cash from operating activities is positive It is not surprising that both net income and cash provided by operating activities are decreasing. QUESTION 22 Use the following exeerp from the ABC Company statement of cash nows to answer questions 18 through 21 regarding an analysis of the cash from operating activity section. 2016 Net income (loss) Depreciation 400 0.100 Deferred incomc tax benefit Increase (decrease) in cash resulting from changes Accounts receivable 11900)(9.800)18,500 700) 34.300 19,000) 13,600 Which of the following statements is true with regard to ABC Company? The ending balance of the accounts receivable account on the balance sheet at the end of 2014 is ($18,500) The accounts receivable account on the balance sheet is increasing in both 2016 and 2015 which has resulted in less cash from operating activities. The accounts receivable account on the balance sheet is decreasing in 2016 and 2015 and increasing in 2014 The accounts receivable account has decreased in 2016 and 2015 because customers have paid for their purchases, resulting in the positive net income those years