CA AnKiT BoHrA (AB)
(Manager)
(25955 Points)
Replied 21 November 2014
because inventory is a part of operating activies.. as inventory is decreased that means we had selled it so profit will b increased..!!
CA AnKiT BoHrA (AB)
(Manager)
(25955 Points)
Replied 21 November 2014
in that case ur debtors will also increases na... if stock decreases....!!! automatically effects will b there in both
QLI Coaching for CA CS
(www.qli.co.in)
(539 Points)
Replied 23 November 2014
Dear Prerana,
It represents Sale of Goods, which means increase in cash flow hence we add it to profits.
CAclubindia
