Question 49 0/0.26 points End of this year End of prior year Accounts receivable $115,000 $98,000 COGS $520,000 Sales Revenue $850,000 Accounts Payable $80,000 $65,000 Inventory $92,000 $110,000 Salary Payable $15.500 $12,000 Salary expense $50,000 $44,000 A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements as above. Which of the following is correct about accounts receivable in the operating activities category of the cash flow statement? ** HINT- Think about if you were trying to get CASH collected. If Accounts Receivable INCREASED then did you collect that cash? The increase of $17,000 will be subtracted from sales to determine cash received from customers. The increase of $17,000 will be added to sales to determine cash received from customers The increase of $17,000 will be added to net income The increase of $17,000 will be subtracted from net income