Question: in the example on slide 13 ( also shown below) what is the cash effect of change in accounts receivable on operating cash flows in

in the example on slide 13 ( also shown below) what is the cash effect of change in accounts receivable on operating cash flows in Year 2?

  • imagine canyon buff corp. spreads $100 in year one to make widgets ( assume the widgets are shown up as inventory on the balance sheet)
    in the example on slide 13 ( also shown below)
its to i Example . Imagine Canyon Buff Corp. spends $100 in year one to i make widgets. '- The widgets are sold on credit for $125 in year two. - The receivable is collected in year three. Year 1 2 3 Cash flow -5100 $0 $125 Sales i S 125 $0 Cost of goods sold I 50 Profit so 525 so 1 1! w o

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