Question:

Why isn't the Income Statement affected by changes in Inventory?

Answer hidden.

Answer:

Working capital changes do not appear on the Income Statement.

For Inventory, the expense is only recorded when the goods are sold. It doesn't count as Cost of Goods Sold or Operating Expense if it is sitting in a warehouse - only when the company sells it.

Other

Accounting

Accounting

What is the relationship between CapEx and Depreciation?

Accounting

What is the difference between deferred revenue and accounts receivable?

Accounting

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Accounting

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Accounting

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Accounting

Does Goodwill get amortized?

Accounting

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Accounting

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Accounting

Walk me through how $10 of Depreciation affects the three financial statements

Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

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Accounting

Walk me through the three financial statements

Accounting

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Accounting

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Accounting

How do you calculate Free Cash Flow?

Accounting

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Accounting

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