24. a companys scf shows an adjustment of (25,000) for inventory. what does this negative amount indicate…

24. a companys scf shows an adjustment of (25,000) for inventory. what does this negative amount indicate? select... the companys inventory increased by $25,000 the companys ending inventory was $25,000 the companys inventory decreased by $25,000

24. a companys scf shows an adjustment of (25,000) for inventory. what does this negative amount indicate? select... the companys inventory increased by $25,000 the companys ending inventory was $25,000 the companys inventory decreased by $25,000

Answer

Brief Explanations:

In the statement of cash - flows (SCF), a negative adjustment for inventory indicates an increase in inventory. When inventory increases, cash is tied up in purchasing more inventory, which is a use of cash. This is reflected as a negative adjustment in the operating activities section of the SCF when using the indirect method.

Answer:

The company's inventory increased by $25,000