一道公司金融选择题Whathappenswhenmovingfromnetincometocashflowfromoperationsastheresultofanincreaseininventorybalances?A.CashflowsincreaseB.CashiflowsdecreaseC.CashflowsareunchangedD.Thechangeincashflowscannot

Question

一道公司金融选择题
What happens when moving from net income to cash flow from operations as the result of an increase in inventory balances?
A.Cash flows increase
B.Cashi flows decrease
C.Cash flows are unchanged
D.The change in cash flows cannot be determined
请说明理由,

Answer 1

The answer is D
Reason：
Net Cash flow Mainly includes: Net cash flow of business activities, net cash flows of investment activities , net cash flow of iPay - funded activities.
It is depended on these three aspects to determine the Net income.
That is to say:the net income is a positive number when they and is a positive number.
There is no a definite relationship between the operating cash flow and net income.
It's need to contemplate these three factors to determine the net income generally.
The Lord bless you,good luck!