3-Statement Inventory Accounting Question
Does inventory get written off of the balance sheet after it's sold for revenue and recorded as COGS etc.?
Context: I'm looking at this question, and the only way the balance sheet balances is if we don't write off the inventory at the end.
Actually, think I figured it out. I think the mistake here is that CFO is up by 318 (because of the decrease in inventory which gets added back to the CFO), and then Total Cash Change is: +278 And then on the Balance Sheet Asset Side, you have: (Cash 278) - (Inventory 200), which leaves you again with +78 on the Asset Side, and balances the Liabilities Side. Can s/o confirm that's right?
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