Question: Walker Corp. uses indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Walker Corp. Comparative
Walker Corp. uses indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
| Walker Corp. |
| Comparative Balance Sheet |
| December 31, 2014 and 2013 |
| 2014 | 2013 | Increase/decrease | |
| Cash | $45,000 | $27,000 | $18,000 |
| Accounts Receivable | 48,000 | 45,000 | 3,000 |
| Inventory | 180,000 | 132,000 | 48,000 |
| Total assets | $273,000 | $204,000 | $69,000 |
How will the change in inventory be shown on the statement of cash flows?
| a.negative cash flow under the investing activities section | ||
| b.negative cash flow under the operating activities section | ||
| c.positive cash flow under the financing activities section | ||
| d.positive cash flow under the operating activities section |
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