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Soya's consolidated statement of financial position shows inventories with a carrying amount of 36,000 at 31 December 20X0 and 34,600 at 31 December 20X1.
Soya's consolidated statement of financial position shows inventories with a carrying amount of 36,000 at 31 December 20X0 and 34,600 at 31 December 20X1. Soya acquired a subsidiary Milk on 1 October 20X1 when the inventories of Milk were 3,600. The Consolidated statement of cash flow is prepared for the year ended 31 December 20X1 using the indirect method, which provides a reconciliation of profit before tax to cash from operating activities. What adjustment should be recorded for "change in inventories" in this reconciliation? Hint: Pay careful attention to the sign (+/-) O a. Change in inventories - 5,000 O b. Change in inventories +2,200 Oc. Change in inventories - 2,200 Od. Change in inventories +5,000 Oe. Change in inventories +1,400 O f. Change in inventories -1,400 Og. None of these options are correct
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