Which of the following would typically increase a company's cash flow?

Collecting accounts receivable typically increases a company's cash flow because it converts credit sales into cash. When a company sells goods or services on credit, they record the sale as revenue but do not receive cash immediately. The accounts receivable balance represents the amount owed by customers. By successfully collecting these receivables, the company increases its cash balance, which is essential for funding operations, paying expenses, and investing in growth.

In contrast, increasing inventory could tie up cash that could have been used elsewhere, resulting in a decrease in cash flow. Decreasing sales would obviously lead to lower cash inflows, negatively impacting cash flow. Paying off debts requires cash outflow, which reduces available cash, thus not increasing cash flow. Collecting accounts receivable is a direct source of cash and is vital for maintaining liquidity in the business.