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The accounts payable of a company changed from $136,100 to $104,300 over the course of a year. This change represents the use of $31,800 of cash as an operating activity.
Change in accounts payable = $104,300 -136,100 = -$31,800
A decrease in accounts payable is a use of cash as an operating activity. Money owed by a company to its suppliers and listed as a liability on the balance sheet is known as accounts payable. It differs from liabilities for notes payable, which are obligations made by formal legal instrument documents. Accounts payable (AP) refers to the sums owed to suppliers or vendors for goods or services received but not yet paid for. The accounts payable balance on the company's balance sheet represents the total of all unpaid sums to vendors. A company's debt to its suppliers for delivered goods and services for which the supplier has provided an invoice is referred to as accounts payable. It may also be the title of the group in charge of all unpaid invoices to suppliers.
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