Quesiton CFS: Pay inventory cash / sell products cash
Hi, how should I model the CFS for the following situation (in a monthly model)?
- Once a month, inventory is bought CASH
- Products are sold on a daily basis CASH
- Therefore, no AR, no AP.
I am unsure to model inventory and would do the following in the cash flow statement
- Inventory = COGS; but have a feeling this is wrong as should be modeled on "Days inventory outstanding"?
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