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A line from the adjustments operating section of the Statement of Cash Flows was as follows: Increase in Inventories $(45,000) Which of the following best

image text in transcribed A line from the adjustments operating section of the Statement of Cash Flows was as follows: Increase in Inventories $(45,000) Which of the following best describes this? Multiple Choice The balance for Inventories on the Balance Sheet decreased by $45,000 from the beginning to the end of the year due to unexpected sales volumes. The company had an inflow of $45,000 because of a protracted three month labor union shutdown during the year. The company had been building up inventory in anticipation of increased demand for its product. The auditors identified this as a mistake on the Statement of Cash Flows because there cannot be a negative increase in inventories

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