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Green Company spends $100 in year 1 to make widgets (assume the widgets show as inventory on balance sheet). The widgets are sold on credit
Green Company spends $100 in year 1 to make widgets (assume the widgets show as inventory on balance sheet).
The widgets are sold on credit for $150 in year 2
The receivable is collected in year 3.
What is the cash effect of change in accounts receivable on operating cash flows in Year 2?
What is the cash effect of change in inventory op operating cash flows in Year 2?
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