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What is the cash balance change resulting from a 100 increase in accounts receivable?

Cash up 25

Cash down 25

An increase in accounts receivable means more sales were made on credit, so cash hasn’t actually come in yet. In cash flow terms, when AR rises, it’s a use of cash and reduces the cash balance by the same amount, since the money is still owed to you. So a 100 increase in accounts receivable lowers the cash balance by 100 (cash is down by 100). If there were cash collections during the period, those would offset part of this decrease, but the direct effect of the AR increase is a cash decrease of the same amount.

Cash down 100

Cash unchanged