Cash flow from operations increases by $1,000,000 when there is a $3,000,000 decrease in inventory and a $2,000,000 decrease in accounts payable.

Name: Cash flow from operations increases by $1,000,000 when there is a $3,000,000 decrease in inventory and a $2,000,000 decrease in accounts payable.
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Question

Quizplus · Accepted Answer

The decrease in inventory ($3,000,000) is added to net income and the decrease in accounts payable ($2,000,000) is subtracted from net income when calculating cash flow from operations.

Cash Flow from Operations Increases by $1,000,000 When There Is