Over a recent three year period, Vino Veritas statements of cash ows revealed cumulative increases in the companys accounts receivable of $145 million Required (a) How does an increase in accounts receivable affect a companys net cash ow from operating activities (b) If a companys accounts receivab...

a An increase in Accounts Receivable decreases cash flow from operating activities because ...

Over a recent three-year period, Vino Veritas statements of cash ows revealed cumulative increases in the companys

Question:

Over a recent three-year period, Vino Veritas’ statements of cash ﬂows revealed cumulative increases in the company’s of $145 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, necessarily, that 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...