Cash inflows arise from _____ assets, ________ liabilities, and ___________ stockholders' equity.
Cash inflows arise from decreasing assets increasing liabilities, and increasing stockholders' equity.
The company's sources (increases) of cash come from:
Decreasing assets (other than cash), for example, collecting accounts receivable, converting inventory to cash, and selling off excess property, plant, and equipment.
Increasing liabilities, for example, adding to accounts payable (less cash needed until the additional bills are actually paid), short-term financing, and long-term borrowing.
Increasing stockholders' equity, for example, securing additional equity investment, and reinvesting profits.