Working Cap movements TIP

Hi All,

Something which a lot of people struggle with is, what happens to net cash flow when there are certain movements in working cap i.e. increase in debtors, decrease in payables. Remember this:

RAILS - Reduction in Assets, Increase in Liabilities is a Source of cash.

IARLU - Increase in Assets, Reduction in Liabilities is a Use of cash.

Hope this helps.