Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, inventory purchased with cash would be classified on the statement of cash flows.
A) Operating activities section.
B) Investing activities section.
C) Financing activities section.
D) Does not represent a cash flow.

Question

Quizplus · Accepted Answer

Inventory purchased with cash would be classified as an operating activity on the statement of cash flows.

Assume That the Fitzgerald Corporation Uses the Indirect Method to Depict