I am missing something when it comes to operating leases and the cash flow statement. My understanding is that under GAAP operating lease expense flows through cash flow from operations, and, other than that, operating leases do not affect investing or financing cash flow.
In looking at cash flow statements, I can see the expense flowing through operating cash flow. But what about the changes in operating lease ROU assets and operating lease liabilities? How are these reflected in the cash flow statement?
For example, if the ROU asset increases by 100, how does this change flow through the cash flow statement? Without somehow reflecting that change in the CFS, the balance sheet gets out of balance.