Inventory at the beginning of the period had a debit balance of $7,000, and a debit balance of $10,000 at the end of the period. Using the indirect method, this will be reported in the operating section of the statement of cash flows as: Click the answer you think is right. a decrease of $3,000 which will be added to net income a decrease of $3,000 which will be subtracted from net income an increase of $3,000 which will be subtracted from net income an increase of $3,000 which will be added to net income Read about this Do you know the answer?

Question

Business

Guest

20 July, 13:29

Inventory at the beginning of the period had a debit balance of $7,000, and a debit balance of $10,000 at the end of the period. Using the indirect method, this will be reported in the operating section of the statement of cash flows as: Click the answer you think is right. a decrease of $3,000 which will be added to net income a decrease of $3,000 which will be subtracted from net income an increase of $3,000 which will be subtracted from net income an increase of $3,000 which will be added to net income Read about this Do you know the answer?

+2

Answers (1)

Know the Answer?

Clicker · Answer 1

an increase of $3,000 which will be subtracted from net income

Explanation:

an increase of $3,000 which will be subtracted from net income. Increase in Inventory = 10000-7000 = $3000. Increase in Inventory is reported as a decrease and subtracted from net income. an increase of $3,000 which will be subtracted from net income