Rick Corporation's Accounts Receivable Increased by $25,000 During the Year

Multiple Choice

Rick Corporation's Accounts Receivable increased by $25,000 during the year.What is the adjustment to the cash flow statement when it is prepared by the indirect method?

A) Subtract the increase from the net income in operating activities section.
B) Add the increase to the net income in operating activities section.
C) Add the increase in the investing activities section.
D) Subtract the increase in the financing activities section.