Here is a quick check of your understanding of sources and uses: If accounts payable go up by $100, does this indicate a source or a use? What if accounts receivable go up by $100?

Accounts payable are what we owe our suppliers. This is a short-term debt. If it rises by $100, we have effectively borrowed the money, which is a source of cash. Receivables are what our customers owe to us, so an increase of $100 in accounts receivable means that we have loaned the money; this is a use of cash.