According to the statement of cash flows, an increase in inventory will D. decrease the cash flow from operating activities.
What is the cash flow from operating activities?
The cash flow from operating activities represents the amount of cash a company receives from its operating or ongoing business activities.
An example of cash flow from operating activities includes cash received from the sale of goods.
The operating activities section is usually the first section depicted on a company's cash flow statement before the investing and financing activities sections.
Thus, according to the statement of cash flows, an increase in inventory will D. decrease the cash flow from operating activities.
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