Why is an increase in inventory shown as a negative amount in the statement of cash flows?

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Financial Accounting: A Business Process Approach

ISBN: 978-0136115274

3rd edition

Authors: Jane L. Reimers

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Question Posted: Nov 30, 2017 10:03 AM

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How is an increase in inventory included in the amounts reported as cash flows from operating activities under (a) The indirect method (b) The direct method?
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Why is an increase in inventory shown as a negative amount in the statement of cash flows?

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An increase in inventory shows that an organization has bought greater no of goods than ...View the full answer

Financial Accounting: A Business Process Approach

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