Question: If I had a decrease in Inventory of 2000, and I had to show what the effect is on cash flow? Cash Flow would be
If I had a decrease in Inventory of 2000, and I had to show what the effect is on cash flow? Cash Flow would be a +2000, but why is that? If there is a increase in inventory by 2000, It would be -2000, because you had to purchase that inventory to have the increase in inventory, so that's why it's -2000. If that's the reason. However why would a decrease in inventory of 2000, be 2000 in cash flow statement?
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