A company accounts receivable, inventories, accounts payable don’t match.


Why is this? For example looking at Abbvie's most recent 10k from dec 31,2021, on its balance sheet I see that accounts receivable is 9,977 but on the statement of cash flows it is 1,321. Why is that? Shouldn't they match? I just noticed this. Where did these two random numbers come from?

Plus why is accounts receivable subtracted from net income? I can't find a clear answer on google or on investopedia.

If an company receives cash from customers it deals with, shouldn't it be added into it?

Also why is accounts payable added into net income? If a company pays a supplier, cash is leaving the company.

Why is inventory different as well?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *