Account receivable is the money owned by customer and Account payable is money owned to supplier.
- What does it mean when trade and other receivables is negative in cash flow statement?
- What does it mean when trade and other payables is negative in cash flow statement?
- How to interpret negative inventories in cash flow statement?
If the trade and other receivables is negative in cash flow statement means that they have not collect back the money from their customers.
As for negative trade payables means that the company paid the supplier the amount that they owe them.
Negative inventories means that the company uses their money to purchase the inventories while positive inventories means that they managed to sell the inventories and get back the money.
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