how will a decrease in inventory affect cash flow from operations? it will be neutral. it will increase. it…

Brief Explanations:

When inventory decreases, it means the company has sold some of its inventory. If we assume the company received cash for those sales (or accounts receivable which can be converted to cash later), it frees up the cash that was previously tied up in inventory. According to the indirect method of calculating cash flow from operations, a decrease in inventory is added to net income to calculate cash flow from operations.

Answer:

It will increase.