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According to the indirect method of preparing a cash flow statement, under which category does inventory fall? Under the indirect method of preparing a cash flow statement, a decrease in a , such as inventory, is added to the net income

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Zviko

Answer:

Cash flow from Operating Activities

Explanation:

Inventories are part of the ordinary course of business and thus any inventory changes will be categorized under Cash flow from Operating Activities.

An increase in the inventory balance will be deducted from Net Income whilst a decrease is added to the net income.

vixzen

Answer:

" non-cash current asset "

Explanation:

From Pluto Tutorial

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