"An increase in amounts receivable can have both a positive and negative impact. In the short term, accounts receivable show up as current-period revenue and have a positive effect on income statements. But over the long term, a large increase in amounts receivable hurts cash flow for the company. An organization's lines on a balance sheet all impact the others. Recently, an increase in accounts receivable for an organization caught my attention, and I noted the cash flow's impact, increasing the chance of the organization's lack of operational funds and reducing the value of its assets."
