Receivables with recourse

brazilatz

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What is the impact on cash flow of a sale of receivables with recourse?
 
think assets will be dreased and cash flow financing will be increased by amt of sale, w/liability also created for recourse because they are still responsible if those receivables are not collected
 
Remove the proceeds from CFO and add them to CFF .
 
only an increase in CFO. It is off-balance sheet lending.
Decrease in CFO in subsequent periods as the amounts outstanding pays of the debt and is not received by the firm.
 
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