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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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