Hello,
I am looking at a statement of cashflows:
Here is the scenario

Net Income -9082.24
Adjustments to reconcile net income to net cash provided by operations
Accounts Receivable -480
Net Cash provided by Operating Activities -9562.24

What does the adjustments to reconcile net income to net cash mean?
And why is does the number (net cash provided by operating activites) continue to decrease if we can an accounts receivable. Wouldnt that increase our cash once the receivable is paid?

CaptainForest

Well, in the example you provided, you net cash from operating activities INCREASED.

That aside….

A statement of cash flows shows WHERE the cash went during the year.

If your AR goes up, that means you are receiving LESS cash for sales.

For example.

In 2005, I made $1,000 in sales…..$400 in cash, $600 in AR. So my cash is $400.

In 2006, I made $1,000 in sales…..$300 in cash, $700 in AR. So my cash is $300.

My AR has gone up, and therefore, my CASH has gone down. And the statement of cash flows is all about CASH.