Assume that the Charleston Inc.uses the indirect method to depict cash flows.Indicate where, if at all, an inventory increase 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 is classified under the operating activities section as it affects the working capital and is part of the adjustments to reconcile net income to net cash provided by operating activities.

Assume That the Charleston Inc