Stuck on Financial Reporting, my weakest link.
If we have an increase in for example accounts reciavables between two years, all else equal that means that we record a negative cash flow on the income statement if I have understood it correctly?
Simillary then if Inventory increase we will have an negative cash flow, since we bind up cash.
But if we have a write-down on Inventory, shouldn’t that then mean a positive cash flow following the same logic, but it doesn’t right, its a negative cash flow as well?
Can someone make this a bit more clear for me, what are all the effects on BS, I/S, Cash Flow Statement?