Why does a change in current assets during the year affect a firm's cash flow for the year?
a. Increasing receivables by selling a product with a pay later plan takes company cash to pay for the the raw materials to make the product
b. The statement is false. Changes in current assets do not affect cash flow for a firm
c. Only changes in inventory affect cash flow, not changes in any other current asset category
e. Buying inventory requires cash which decreases cash flow