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Imagine Canyon Buff Corp. spends $100 in year one to make widgets (assume the widgets are shown up as inventory on the balance sheet). The
Imagine Canyon Buff Corp. spends $100 in year one to make widgets (assume the widgets are shown up as inventory on the balance sheet).
The widgets are sold on credit for $125 in year two.
The receivable is collected in year three.
what is the cash effect of change in inventory on operating cash flows in Year 2?
| -$125 | ||
| $125 | ||
| -$100 | ||
| $100 |
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