Question

Hillman Corporation reported a decrease in accounts receivable of $391,216. This is best defined as a _________ of cash on the _______________ segment on the statement of cash flows. source of cash; investing activities use of cash; operating activities use of cash investing activities source of cash; operating activities source of cash financing activities use of cash financing activities

Answer 1

This is best defined as a SOURCE of cash on the OPERATING segment on the statement of cash flows.

Step-by-step explanation:

The operating sector of the cash flow statement includes net income plus any adjustments that include depreciation expense, changes in accounts receivables, inventories, accounts payables, etc.

A decrease in accounts receivable increases operating cash flows.