Question

Which financial statement shows inventory?

Answer 1

A Income Statement - Cost of goods sold are reported in some income statement accounts. Invenotries are used in the calculation of cost of goods sold.

Cost of Goods Sold = Beginning inventory + Net purchase + Direct expenses - Ending inventory.

B. Balance Sheet - Inventory is a current asset. The ending balance of inventory is reported the current assets section of balance sheet.

C. Cash Flow Statement - Change in inventory (from previous year to current year) is added / subtracted under Operating Activities section of cash flow statement.

Decrease in invnetory is added to net income & Increase in inventory is subtracted from net income.