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:-) How bad do you want to retain this client?
I agree with Mr. Yet!
However does your client want to spend what it will cost? Sounds like a lenghty job. If your doing that work, make sure it...

First of all you actually paid a bill, so you should know that cash has been reduced, this means you credit cash

Secondly, it sounds as though you paid the insurance bill ahead of time so you have...

Well my three years with the IRS, and my 15 yrs or so in accounting I would suggest you get a masters in Taxation NOT accounting. My masters in accounting cover a good deal of International...

Madtown,
First of all the balance sheet is for a SPECIFIC point in time, so I am wondering if the positive cash flow you speak of is for a time different from the balance sheet.