In 20X3, Toys 4 U reported inventory of $1,902 million and trade payables of $1,415 million. In 20X2, the company reported inventory of $2,464 million and trade payables of $1,280 million. What was the effect on the 20X3 cash flow from operating activities?
A) A decrease in cash of $697 million.
B) An increase in cash of $697 million.
C) A decrease in cash of $427 million.
D) An increase in cash of $427 million.

Question

Quizplus · Accepted Answer

Calculation: ($2,464 - $1,902) + ($1,415 - $1,280) = $697.

In 20X3, Toys 4 U Reported Inventory of $1,902 Million