Accounting Confusion - Calculating Indirect Cash Flow Changes in Accounts Receivable

[DonaldWestin]

Financialmanager - I've noticed that many businesses aren't fully grasping the nuances of this adjustment. They frequently take care of it as a simple subtraction, failing to account for the increased risk of uncollectible debt. What are some best procedures for making sure accurate and compliant calculation of indirect cash flow adjustments related to accounts receivable?