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Author: dwitt One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3916  
Subject: Receivables, Net Date: 1/14/2013 12:33 PM
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I'm looking through a company I have stock with (Cerner) and in the 10Q in the Cash Flow from Operations section, I see the Accounts Receivable difference (or what they call Receivables, Net) but I'm not sure what other values they're using to compute this difference.

For example, in the latest 10Q, the changes in Receivables, Net was -31,102 for their 9 months ending 2012, but when you look at the values on the Balance Sheet, the 2012 value is 563,209 and the 2011 value is 542,415, giving a difference of 20,794.

There is a section concerning how they calculate Receivables, Net, but it's not clear how that helps in the above calculation:

(In thousands) September 29, 2012 December 31, 2011
Gross accounts receivable $490,972 $496,706
Less: Allowance for doubtful accounts 34,491 24,270


Accounts receivable, net of allowance 456,481 472,436

Contracts receivable 60,888 81,776
Current portion of lease receivables 25,046 8,997

Total receivables, net $542,415 $563,209


Any help here would be appreciated, sorry about the formatting
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Author: rtichy Big red star, 1000 posts Old School Fool Global Fool Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3886 of 3916
Subject: Re: Receivables, Net Date: 1/21/2013 3:19 PM
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I agree with what you said, "It's not clear".

maybe an email to investor relations could clear it up?

I went to sec.gov and looked at the interactive statements to see everything you saw, and I don't get it either. They clearly have bumped up their allowance for doubtful accounts, by $10,221, but the difference is $10,308 between the balance sheet net A/R (change) and the Cash Flow Net Receivables (change) over the 9 month period...

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Author: zoningfool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3887 of 3916
Subject: Re: Receivables, Net Date: 1/22/2013 11:01 AM
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I am guessing that the discrepancy lies in the term 'net of businesses acquired'. However, since many of the other line items also do not 'mesh' I would agree with the suggestion to contact I/R for more clarity.

For example the difference between inventory is an increase of 1,012 on the balance sheet, 907 on the cash flow statement. Similarly, the difference in prepaid expenses on the balance sheet is an increase of 34,309 vs. 18,322 on the cash flow statement. Ask for a reconciliation of the differences between the two financial statements to be provided.

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