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

    Dec 5, 2008, 03:09 PM
    Should inventory be included on the income statement
    Should the total inventory be included on the income statement or only the change to the inventory for that month?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Dec 5, 2008, 03:16 PM

    Neither.

    Inventory is an asset and is reflected on the balance sheet.

    Change in inventory will affect cash flow, but not income.
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