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You are developing an accrual-adjusted income statement from a cash income statement. During the year, inventories increased. What is the adjustment you need to make?

You are developing an accrual-adjusted income statement from a cash income statement. During the year, inventories increased. What is the adjustment you need to make?"

add ending inventory to income

add ending inventory to expenses

add the increase in inventories to income

add the increase in inventory to expenses

no change

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