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• Operating section
• Investing section
• Financing section
• It would not appear on the statement
Under operating activities (working capital changes) while preparing cash flow statement using indirect method.
An increase in accounts payable appears in Operating section in Cash Flow with positive balance
Operating Section: increase is to be added and decrease is deducted from operating section
it appear under operating Section to determine Cash generated from operations
operating section because increase in payables would effect the cash flow problems for company which is not payable in required time,hence effect operations of company
We will show accounts payable movement in te changes in working capital area under operating activities.
Operating...................
Change in current liabilities wilk appear on operating section
increase in accounts payables should appear in operating section
