Inventory

This topic has 5 replies, 2 voices, and was last updated 4 years ago by John Moffat.

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May 26, 2021 at 10:38 am #621810
maximus07
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Why increase in inventory subtracted to profit to find cashflow?
May 26, 2021 at 2:56 pm #621825
John Moffat
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Because cash will have been paid to increase the inventory.
May 26, 2021 at 3:42 pm #621835
maximus07
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So there is chance of buying inventory on credit?
May 26, 2021 at 5:13 pm #621849
John Moffat
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Yes, which is why we also adjust the profit for changes in payables.
Have you watched my free lectures on this?
May 26, 2021 at 6:45 pm #621858
maximus07
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No sir. I am unable to find on website. I watch on youtube which are not in sequence. However, I have to search topic by topic.
May 27, 2021 at 7:47 am #621876
John Moffat
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You can find all our resources linked from the main Paper FA page:
https://opentuition.com/acca/ma/
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