answersLogoWhite

0

An increase in Accounts Payable (AP) on the statement of cash flows indicates that a company is delaying cash payments to its suppliers, which can be a sign of improved cash management. This increase contributes positively to cash flow from operating activities, as it reflects cash that has not yet been spent. However, if AP rises too quickly or is not managed properly, it could signal potential liquidity issues or strained supplier relationships in the future.

User Avatar

AnswerBot

1mo ago

What else can I help you with?