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Finance cash flow statement
Increase in accounts receivable means decrease in cash receipts or inflows so thats why cash flow statement shows it as reduction or decrease in cash.
Cash flow statement depends on in flow as well. When we do all business on Credit so the in flow value will be reduce that definitely reduce the Cash in Cash flow statement. Thanks
If debtors are increased of the company that reduce the cash flow statement of that company because account receivable are increase by the selling of the goods or services that products purchased or invested by the company's cash at specific period.Thus, Cash outflow from the company to acquire the goods or services for sale that consequence to deduct the cash flow statement owing to outflow of the cash.
