According to the statement of cash flows, an increase in inventory will _____ the cash flow from _____ activities.

A) Decrease; financing.
B) Decrease; operating
C) Increase; financing.
D) Increase; investing.
E) Increase; operating.

Statement Of Cash Flows

A financial document showing how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Inventory

The complete list of items such as goods, materials, and products that a business holds for the ultimate goal of resale or repair.

Operating Activities

Activities that relate to the primary operations of a company, such as sales and production, and their effects on cash flow.