answersLogoWhite

0

Many things can cause a decrease in cash flow including decrease in sales, increase in expenses, not collecting accounts receivables timely, and increase in interest rates.

User Avatar

Wiki User

11y ago

What else can I help you with?

Related Questions

Does a decrease in accounts payable decrease cash flow?

Yes decrease occurs due to payment of cash to creditors which causes the cash to reduce as well.


Do increases in inventory increase or decrease cash flow?

Increase in amount of inventory causes the decrease in cash flow of company as company pays the cash to acquire inventory and hence reduction in cash flow occurs.


Does a decrease in accounts payable increase cash flow?

Decrease in accounts payable causes the decrease in cash flow because decrease in accounts payable means that creditors are paid of and hence cash is decreased when somebody paid.


Does an increase in sales tax payable increase or decrease cash flow?

Increase in sales tax payable increases the cash because if at first place cash is paid then cash will be reduced but if payable is increasing it means cash is increasing as well and it will decrease when all sales tax payable will be paid.


Does an increase in interest payable increase or decrease cash flow?

Increase in interest payable increases the cash flow of company as payment is not cleared when due and which causes temporary increase in company's cash flow


Do increase in accounts payable increase or decrease cash flow?

Increase in Accounts payable increases the cash flow because if we had paid accounts payable it will reduce our cash immediately but instead of paying cash we defferred the payment for future time and save the cash that's why it increases the cash flow. Following are simple rules to determine effect on cash flow increase in asset reduces the cash flow decrease in asset increase the cash flow increase in liability increase the cash flow decrease in liability decrease the cash flow


Do increase in investments decrease cash flow or decrease cash flow?

Increasing investments decreases cash flow because money must be spent on said investments.


What is the effect on cash flow on increased trade receivables?

It has reverse effect on that and it will decrease your cash flow.


Does increase of inventory increase or decrease cash flow?

When adjusting your cash flow statement, you increase (add) a decrease of inventory and decrease (subtract) an increase of inventory


Does a decrease in prepaid expense increase or decrease cash flow?

Decrease in prepaid expenses increases the cash flow because if there is no prepaid expenses already in balance sheet then cash has to be paid to fulfill expenses but as there are prepaid expenses and company save cash that;s why it increases the cash flow.


Does an increase in notes payable increase or decrease cash flow?

It increases cash flow because you receive cash.


If decrease in income taxes payable cash flow will be?

If there is decrease in income tax payable amount it will reduce the cash flow from operating activities or cash outflow from operating activity.