Harlowe Corp, a private company reporting under ASPE, engaged in the following transactions. For each transaction, indicate where, if at all, it would be classified on the statement of cash flows. Assume the indirect method is used. Increase in merchandise inventory:

Question

Quizplus · Accepted Answer

An increase in merchandise inventory represents a use of cash in the operating activities section, as it indicates that the company has spent cash to purchase more inventory to sell to customers.

Harlowe Corp, a Private Company Reporting Under ASPE, Engaged in the Following