Nps wrote: »
If receivables decrease, it means you've received the cash, hence a cash inflow. Remember DA DA DD Going down your Statement of Financial Position Trade Recievables - if they DECREASE, you ADD it to your cashflow. Inventory - if they DECREASE you ADD it to your cashflow. Trade Payables - if they DECREASE you DEDUCT it from your cashflow (And vice versa). Whenever I do a cashflow question, I think of the phrase Ta-dah! (as used in the Boots No.7 advert). It reminds me of DA DA which reminds me of the order, and I know that the remaining one is the odd one out and therefore DD (deduct deduct). Very very random, but clearly works as I haven't done a cashflow question for months and months yet immediately knew what to do without having to work it out logically.