Which section of the Statement of Cash Flow would you look to find cash flows related to inventory?1 pointOperating ActivitiesInvesting ActivitiesNet CashFinancing Activities
Question
Which section of the Statement of Cash Flow would you look to find cash flows related to inventory?1 pointOperating ActivitiesInvesting ActivitiesNet CashFinancing Activities
Solution
You would look in the Operating Activities section of the Statement of Cash Flow to find cash flows related to inventory. This section includes cash flows from transactions that affect the company's net income, such as sales of goods and services, expenses paid for salaries, and purchases of inventory.
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