Which of the following would typically decrease cash flows from operating activities?

The correct choice regarding a decrease in cash flows from operating activities is the increase in accounts receivable. When accounts receivable increase, it indicates that the company has made sales but has not yet received cash for those sales. This situation is common when credit sales rise; while sales figures may improve the income statement, they do not directly contribute to cash flow until the customers actually pay their invoices. Consequently, higher accounts receivable can lead to a cash flow crunch, as cash has not yet been collected, which reduces the cash generated from operating activities.

In contrast, the other scenarios would either positively impact cash flows or not directly affect them. For example, an increase in accounts payable reflects a situation where a company is able to delay payments to suppliers, conserving cash and effectively increasing cash flows. A decrease in merchandise inventory typically results in cash inflow, as it indicates that inventory is being converted into sales. Finally, an increase in cash sales directly enhances cash flow since it involves receiving cash upfront for goods sold, contributing positively to operating cash flows.