. The following information has been taken from the consolidation worksheet of Graham Company and its 80% owned subsidiary, Stage Company. (1.) Graham reports a loss on sale of land of $5,000. The land cost Graham $20,000. (2.) Noncontrolling interest in Stage's net income was $30,000. (3.) Graham paid dividends of $15,000. (4.) Stage paid dividends of $10,000. (5.) Excess acquisition-date fair value over book value was expensed by $6,000. (6.) Consolidated accounts receivable decreased by $8,000. (7.) Consolidated accounts payable decreased by $7,000.

Using the indirect method, where does the decrease in accounts receivable appear in a consolidated statement of cash flows? A. $8,000 increase to net income as an operating activity. B. $8,000 decrease to net income as an operating activity. C. $6,400 increase to net income as an operating activity. D. $6,400 decrease to net income as an operating activity. E. $8,000 increase as an investing activity.