To find the cash flows, work out the change in accounts receivable each year Then subtract these changes from the net income The firms customers did not all pay the next period Therefore, the cash flows were delayed Year Reported Net Income Reported Accounts Receivable 3 4 5 2 $100 $100 $300 $300 $...

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To find the cash flows, work out the change in accounts receivable each year. Then subtract these

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To find the cash flows, work out the change in accounts receivable each year. Then subtract these changes from the net income. image text in transcribed

The firm’s customers did not all pay the next period. Therefore, the cash flows were delayed.

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Corporate Finance An Introduction

ISBN: 9780321277992

1st Edition

Authors: Ivo Welch

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Question Posted: Oct 26, 2024 04:01 AM

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To find the cash flows, work out the change in accounts receivable each year. Then subtract these

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Year Reported Net Income Reported Accounts Receivable 3 4 5 2 $100 $100 $300 $300 $100 $0 60 $100 $120 $340 $320 $120 $0 Change in Accounts Receivable $100 $20 $220 Cash Flows -$20 -$200 -$120 $0 $80 $80 $320 $300 $120

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Corporate Finance An Introduction

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