WCInv: why need to add back Accred taxes and expenses? text book Readh 43, page 438, Q2. in the tab of “statement of Cash flows in Millions”: for Accounts receivable, as (39), does it mean an increase in AR or decrease? for item: Accrrued taxes and expenses in 23, an increase or decrease? thanks
not sure about accrued taxes/expenses if you are looking at cash flow statement, I believe a (39) means an outflow of cash, therefore A/R must have gone up because when A/R goes up, cash goes down b/c you aren’t actually collecting it.
accrued taxes are taxes you have not paid out in cash, they are a liability that increased (like accounts payable) which is inflow of cash. agree with andrew on the other account