So, for example, accounts receivable.

So you have accounts receivable of 400

So we have an increase in accounts receivable.

I cut me a slice of last year's premiums.

Blame high fuel costs, blame insurance premiums, blame technology.

They can no longer jack up your premiums without reason.

She bought health insurance. She paid her premiums on time.

So over here we have a net change in accounts receivable.

AR is short for accounts receivable, just to save some space

Accounts Receivable, that they're not changing over the course of the year.

When they pay you the 400, it goes from accounts receivable to cash.

They're just pieces of paper my benefactor's been collecting premiums on for years.

It was wrong to let insurance companies just jack up premiums for no reason.

If you multiply this by a 100 you would get 100 dollars in premiums.

When I saw that, I got worried, so I checked Accounts Receivable on other customers.

These guys are just collecting premiums essentially on the insurance, without having to pay out anything.

And if you can't afford the premiums you'll receive a credit that helps pay for it.

Moreover, mothers who can deal with both, work and childcare, can keep paying their pension premiums.

It's listed as a current asset on this balance sheet but the invoice was never presented to accounts receivable, so....

Family income has fallen by 4,000, but health insurance premiums are higher, food prices are higher, utility bills are higher, and gasoline prices have doubled.

Now, with cash basis, you would have added that to your revenue, but here, we already accounted for it in the accounts receivable, we already took that revenue.

let's see those zeros cancel out, this zero cancels out, they're getting, over the life of the policy, 1 dollar in premiums for every 100 dollars in insurance.

The one way to think about it is to think about what's the total premiums they're getting over the life of this policy divided by how much they are insuring me for.

But I have an accounts receivable of 400, so my total assets now are 300 of assets, remember, accounts receivables aren't assets, because someone owes me something, someone owes me cash in the future.

First, when uninsured people who can afford coverage get sick and show up at the Emergency Room for care, the rest of us end up paying for their care in the form of higher premiums.

And second, if you ask insurance companies to cover people with pre existing conditions but don't require people who can afford it to buy their own insurance some folks might wait until they're sick to buy the care they need which would also drive up everybody else's premiums.

The way that you account for that, is on your balance sheet, you say that you are essentially owed 400, so this accounts receivable this is essential stuff that other people owe you, you need to receive this from other people, but it's an asset, other people have an obligation to you

So let's just think about it, when you have an increase in account receivable, you're kind of letting people owe you money you're letting people owe you 400 if you didn't let them owe you, that would have been cash, so you're kind of pushing back the time that you're getting cash.