Answer:
Increase in accounts payable if A/P increases then, the company has delayed payment to suppliers therefore, saved cash this generates cash flow.
Explanation:
Increase in accounts receivable: If A/R increase this means less sales were collected hence, less cashflow
Decrease in other current liabilities If liabilities decrease, this represent payment made for the company to settle old debt thus, less cash flow
Increase in inventories more inventories means more cash used to acquire goods thus, less cash.
Increase in accounts payable if A/P increases then, the company has delayed payment to suppliers therefore, saved cash this generates cash flow.
