An increase of $100,000 in inventory would result in a(n)
A) Decrease of net cash flow.
B) Increase in net cash flow.
C) Decrease in marketable securities.
D) Increase in bonds payable.

Question

Quizplus · Accepted Answer

Increasing inventory requires spending more cash to acquire the inventory. This means there will be a decrease in net cash flow, as cash is being used for the inventory purchase.

An Increase of $100,000 in Inventory Would Result in A(n)