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what is the cash effect of change in accounts receivable on operating cash flows in Year 2? Imagine Canyon Buff Corp. spends $100 in year

what is the cash effect of change in accounts receivable on operating cash flows in Year 2?

Imagine Canyon Buff Corp. spends $100 in year one to make widgets (assume the widgets are shown up as inventory on the balance sheet).

The widgets are sold on credit for $125 in year two.

The receivable is collected in year three.

$125

$100

-$100

-$125

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