Question
Suppose ABC corp. has an inventory of $100 on 12/31/2015, and $80 on 12/21/2016. This change in inventory from 2015 to 2016 ___ the cash
Suppose ABC corp. has an inventory of $100 on 12/31/2015, and $80 on 12/21/2016. This change in inventory from 2015 to 2016 ___ the cash available in firm in 2016. In other words, the cash effect of this change in inventory from 2015 to 2016 operating cash flow is ___.
A. Increases, -$20
B. Decreases, -$20
C. Increases, $20
D. Decreases, $20
E. Cannot be determined.
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Financial statements
Authors: Stephen Barrad
5th Edition
978-007802531, 9780324186383, 032418638X
