Page 71 - CFA Lecture Day 8 Slides

Session Unit 7:

26. Understanding Cash Flow Statements (A/B/A/C/B/A/C/A)

tanties

B. $150,000 sales + $10,000 decrease in accounts receivable = $160,000 cash collections. The change in accounts payable does not
affect cash collections. Accounts payable result from a firm’s purchases from its suppliers.