Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, an inventory increase with cash would be classified on the statement of cash flows.
A)Operating activities section.
B)Investing activities section.
C)Financing activities section.
D)Does not represent a cash flow.

Question

Quizplus · Accepted Answer

An increase in inventory with cash would be classified as a use of cash in the operating activities section of the statement of cash flows, as it reflects an increase in the company's inventory investment.

Assume That the Fitzgerald Corporation Uses the Indirect Method to Depict