Expand further on this:

"At first, it appears as though there may be information not provided in the balance sheet or income statement that skewed the operation numbers or that certain activities were misclassified. However, the related events change the landscape of the situation. Based on the events, it appears this drastic change is related to the extension of credit card policy. The increase in the accounts receivable and accounts payable shows that the company is reporting that their income is in cash rather than accurately reflecting the increase in accounts payable due to the new credit policy (Spiceland, et. al., 2019). These assets may no longer be liquid because the extension of credit may also increase the bad debt or the length of time it takes to retrieve the debt owed to them.

If I was Paul, I would do further research using a spreadsheet to ensure all necessary information is analyzed before taking further action. Looking at other reports may also increase the understanding of why there is such a various shift in numbers (Spiceland, et. al., 2019). The authors explain that transactions necessary for reporting cash flows are not always readily available, and a spreadsheet can be used to fill in the blanks to prepare cash flow statements and fill in unknown information. I would look at the cash accounts to verify the increase in the accounts payable (Spiceland et. al., 2019). If the accounts receivable accounts are correct, I would recommend the company either change their credit card policy again or alter the financial documents to be more transparent regarding why their is a decrease in cash and increase in accounts receivable, regardless of the fact that they are both classified as cash assets"