Change in Current Liabilities

All increases in Current Liabilities cause decrease in Working Capital and leads to increase in cash and vice versa.

Increase in Current Liabilities Decrease in Working Capital, Increase in cash	Decrease in Current  Liabilities  Increase in Working Capital,  Decrease in Cash
Increase in Creditors implies that cash payments to creditors are less than the purchase figure	Decrease in Creditors means more cash payments than the purchase figures
Increase in Income in advance implies greater cash inflow	Decrease in Income in advance means lesser cash inflow

Adjustments related to changes in current liabilities to compute cash flows generated from operations.

Accounts and Trade Notes Payable:

• Increases—add to net income to get operating cash flow
• Decreases—subtract from net income to get operating cash flow

Other Liabilities (e.g., accruals), excluding nontrade payables:

• Increases—add to net income to get operating cash flow
• Decreases—subtract from net income to get operating cash flow