Why is a decrease in inventory shown as an increase in cash when computing cash flow from

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Why is a decrease in inventory shown as an increase in cash when computing cash flow from operations?

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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Question Posted: Jan 29, 2012 12:35 AM

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Why is a decrease in inventory shown as an increase in cash when computing cash flow from

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Because the indirect method begins with the net income figure accrual items included ...View the full answer

Intermediate Accounting

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