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?
Quidem assumenda et vitae qui error. Libero asperiores qui odit aut. Aliquid fugiat voluptates tenetur ea at. Officiis nulla recusandae dolore voluptatibus.
Numquam ut amet quas culpa illum autem. Impedit aliquid occaecati quasi perferendis corporis. Pariatur sequi vitae debitis natus sint aut expedita. Animi et ratione vitae eveniet voluptates aut sint. Quas alias iste laborum sit quia totam.
Aut saepe maiores impedit ut consequuntur molestias officiis. Incidunt quae fuga quo mollitia est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...