Why doesn't change in accounts receivable on balance sheet match cash flow statement?

Question

If we take a look at the [balance sheet] for Microsoft, I see `Net Receivables` as `21,485,000 [2014]` and `19,118,000 [2013]` On the [cash flow statement], I see `Changes In Accounts Receivables` as `(1,120,000)`. This doesn't match the change in receivables from the balance sheet: `21,485,000-19,118,000 = 2,367,000` In general, I'm wondering how to reconcile/tie-together the `Changes in...` items from the operations portion of the cash flow statement to their counterparts on the balance sheet. I seem to be missing something fundamental because the math also doesn't work for inventory (haven't checked the other two). [balance sheet]: https://finance.yahoo.com/q/cf?s=MSFT&annual [cash flow statement]: https://finance.yahoo.com/q/bs?s=MSFT+Balance+Sheet&annual

Answer 1

It's the change in gross receivables, since the net receivables includes the allowance for doubtful accounts