Question: Agua Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet: 2014
Agua Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet:
|
| 2014 | 2013 | Increase/decrease |
| Cash | $ 33,000 | $ 18,000 | $15,000 |
| Accounts receivable | 22,000 | 35,000 | (13,000) |
| Inventory | 170,000 | 115,000 | 55,000 |
| Total assets | $225,000 | $168,000 | $57,000 |
How will the change in Inventory be shown on the statement of cash flows?
a.
Investing activities minus negative cash flow
b.
Operating activities minus positive cash flow
c.
Operating activities minus negative cash flow
d.
Financing activities minus positive cash flow
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