In the most recent fiscal year, General Cereals statement of cash flows revealed an increase in the companys accounts receivable of $129 million Required a How does an increase in accounts receivable affect a companys net cash flow from operating activities b If a companys accounts receivable balan...

a In general when receivables are increasing less revenue is being tra ...

In the most recent fiscal year, General Cereals statement of cash flows revealed an increase in the

Question:

In the most recent fiscal year, General Cereal’s statement of cash flows revealed an increase in the company’s of $129 million.

Required
a. How does an increase in affect a company’s net cash flow from operating activities?
b. If a company’s balance is continually increasing from one year to the next, does that indicate the ﬁrm is doing a poor job of managing or collecting its Explain.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...