Question: Why is a decrease in inventory shown as an increase in cash when computing cash flow from operations?

Why is a decrease in inventory shown as an increase in cash when computing cash flow from operations?

Step by Step Solution

3.33 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Because the indirect method begins with the net income figure accrual items included ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

92-B-M-A-S-C-F (713).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!