During the last year of operations, Theta 's accounts receivable increased by $10,000, accounts payable increased by $5,000, and inventories decreased by $2,000 What is the total impact of these changes on the difference between profits and cash flow ...

An increase in accounts receivable reduces ca ...

During the last year of operations, Theta's accounts receivable increased by $10,000, accounts payable increased by $5,000,

Question:

During the last year of operations, Theta's increased by $10,000, increased by $5,000, and inventories decreased by $2,000. What is the total impact of these changes on the difference between profits and cash flow?
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...