标题: Inventory cash flows vs COGS [打印本页] 作者: Mechanic 时间: 2011-7-13 15:26 标题: Inventory cash flows vs COGS
Can someone please clarify the difference between a decrease in inventory on the cash flow statement (cash inflow), vs. cost of goods sold?
COGS = opening stock + purchases - closing stock
But in the above formula, the difference is a change in inventory, which is captured as a change in working capital...isn't' that double counting? Is a decrease in inventory not the same thing as inventory that was converted to sale and therefore COGS?
