Question: Cash Flow Statement Impact of M&A

How are changes in B/S accounts (working capital, PP&E, goodwill, etc.) relating to an acquisition reflected on the CF statement of the acquiring Company? Theoretically, ending inventory (on the B/S) should equal beginning inventory + change in inventory (operating section of CFS). However, in the case of an acquisition, is the increase in inventory ($20 in the below example) lumped into the investing section of the CFS in the line, acquisition of business, net of cash acquired? If this is the case, would ending inventory not equal beginning inventory + change in inventory (from operating section)? I've provided two example CF statements for the scenario below. Would love some feedback as to whether or not either of them make any sense. If not, would love to see what the CFS should look like.

Scenario: Company A with the following B/S at the beginning of the period purchases Company B for $100. Company A allocates the purchase price as A/R $20, Inventory $20, PP&E $20, and Goodwill $40. Company A pays for Company B with $50 Debt and $50 cash.

Company A B/S (BOP)

Cash $100
A/R $100
Inventory $100
PP&E $100
Assets = $400

Long-Term Debt $200
Equity $200
L+E = $400

Company A B/S (EOP)

Cash $50
A/R $120
Inventory $120
PP&E $120
Goodwill $40
Assets = $450

Long-Term Debt $250
Equity $200
Liabilities & Equity= $450

Company A CF Statement Example 1:

Investing Activities:
Acquisition of business -$100

Financing Activities
Debt Increase +$50

Company A CF Statement Example 2:
Operating Activities:
Inventory -$20
A/R -$20

Investing Activities:
PP&E -$20
Goodwill -$40

Financing Activities:
Debt increase $50