if-a-companys-inventory-decreases-by-5000-how-does-this-affect-operating-cash-fl

Question

If a company's inventory decreases by $5,000, how does this affect operating cash flows using the indirect method?

Accepted Answer

Increase cash flows by $5,000

Answer

Decrease cash flows by $5,000

Answer

No effect on cash flows

Answer

Multiply cash flows by $5,000

If a company's inventory decreases by \$5,000, how does this affect operating cash flows using the indirect method?