Non-current Assets and Liabilities in 3 Statement Models
Hi everyone,
I am used to thinking about non cash working capital as non-cash current assets - non-interest bearing current liabilities. However, companies often report working capital items on their corresponding non-current sections. As an instance, I found companies reporting long-term receivables, long-term contract assets, long-term paybles, long-term deferred revenue, and provisions. In my 3 statement models, I have been grouping them within either "other noncurrent assets" or "other noncurrent liabilities" and leave them unchanged over time. However, these items do represent cash inflows and outflows, therefore, wouldn't it be more correct for me to attach their value to revenues and grow them while reporting the cash inflow/outflow in the cash from operations sections?
What do you guys do in these cases?
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