Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A Company s accounts receivable has increased from $ 1 0 0 0 to $ 2 0 0 0 from year 1 to year 2

A Companys accounts receivable has increased from $1000 to $2000 from year 1 to year 2. What adjustments would appear in the indirect statement of cash flows?
a. No adjustment, because $1000 increase is on accounts receivable rather than cash
b. A negative $1000 for accounts receivable, indicating use of cash
c. A positive $1000 for accounts receivable, indicating a source of cash

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Corporate Finance

Authors: John B. Guerard Jr. Anureet Saxena, Mustafa Gultekin

2nd Edition

3030435466, 978-3030435462

More Books

Students also viewed these Finance questions

Question

What reward policy would you suggest to the university?

Answered: 1 week ago