Thanks for the explanation! I'm still not sure I get it, though I definitely understand accounts payable better. Let me see if I can explain the point I'm stuck on...so, a balance sheet is essentially a snapshot of a company's financial condition at a single point in time, right? If you have $1 million in current liabilities on your balance sheet, then generally speaking, by the same time next year, you would've had to pay at least $1 million to your creditors. Your balance sheet next year would still list a similar amount of current liabilities, since you would've taken on more payables during that time to replace the ones you've paid off, but that doesn't change the fact that at least $1 million would've had to come out of your pocket from today to one year later.
In order to fund that $1 million, logically, your operating cash flow for the year has to equal or exceed $1 million, doesn't it?