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    dianneiristamon's Avatar
    dianneiristamon Posts: 1, Reputation: 1
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    #1

    May 3, 2009, 05:35 PM
    Cash flow statement - inventory
    Is the inventory in the cash flow statement comprises ONLY finished goods inventory? In manufacturing firms there are work in process, raw materials and finished goods inventory, I'm just wondering if making a statement of cash flow, is it only the finished goods inventory are included in the computation.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    May 4, 2009, 01:01 AM

    Oh wow, that's a darn good question. Never did a cash flow for manufacturing before. Let me think about it and see if I can figure it out.

    But -- I do need to know first whether you're doing direct or indirect method. (I'm not sure if that makes a difference in whether you use all 3 inventories or not, but it might -- and it would be nice to only have to think about one method. :-))
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