Posted On: 02/16/2016 10:21:40 PM
Post# of 96891
Winston -
That's not how AR works. Revenue is from sales. When you invoice the sale and are not paid yet, it's AR. When you get paid against the invoice, cash goes up and AR goes down.
Therefore, the AR is a figure base on Q4 and previous sales, as we don't know what the aging is on the AR.
It would be accurate to say our cash position will improve by 2.5M through recovering the receivables, albeit offset by a certain amount based on accounts payable.
Regards,
kbulldog.
That's not how AR works. Revenue is from sales. When you invoice the sale and are not paid yet, it's AR. When you get paid against the invoice, cash goes up and AR goes down.
Therefore, the AR is a figure base on Q4 and previous sales, as we don't know what the aging is on the AR.
It would be accurate to say our cash position will improve by 2.5M through recovering the receivables, albeit offset by a certain amount based on accounts payable.
Regards,
kbulldog.
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