scruge

If a company securitizes AR, you’d undo the adjustment. I think the material wants us to *really* start thinking like analysts .
AR grew from 11 to 16. Net movement is -5. The company did sell a portion AR, but we, as analysts, wouldn’t really believe in that shit. So, we bring the securitized AR back on the B/S and undo the sale (aggressive revenue recognition).
Conventionally, total movement is (this is from level 1): Revenue + Beginning AR - Ending AR = 137 + 11 - 16 = 132.
Undo the AR securitization, and you have: 132 - 2 = 130.
Hope this helps.