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In the example on slide 13 (also shown below), what is the cash effect of change in inventory on operating cash flows in Year 2?

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In the example on slide 13 (also shown below), what is the cash effect of change in inventory on operating cash flows in Year 2? 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 Year 1 2 Inventory $100 $0 $0 Alnventory $100 -$100 $0 AR $0 $125 $0 AAR $0 $125 -$125 A $123 B. 5125 C $100 D. $100

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