Asked by DANTE ANDERSON on May 29, 2024

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Cyclone Inc.reported the following figures from its financial statements for the years 2018 through 2020:
Cyclone Inc.reported the following figures from its financial statements for the years 2018 through 2020:    Describe how the change in accounts receivable will affect the calculation of cash flow from operating activities for 2020 and 2019. Describe how the change in accounts receivable will affect the calculation of cash flow from operating activities for 2020 and 2019.

Cash Flow

The cumulative sum of funds moving in and out of a company, particularly influencing its liquid assets.

Operating Activities

Activities related directly to the business's primary operations, such as selling products or services, and reflected in its cash flow statement.

Accounts Receivable

Financial obligations of customers towards a company for received goods or services yet to be paid.

  • Comprehend the impact of variations in accounts receivable on cash flow generated from operating activities.
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saundarja banerjeeMay 29, 2024
Final Answer :
In 2020,accounts receivable decreased $21,913 [$90,561 - $68,648].This results in an increase in cash flow from operating activities during 2020.In 2019,accounts receivable increased $34,107 [$90,561 - $56,454].This results in a decrease in cash flow from operating activities for 2019.