how will an increase in inventory affect cash flow from operations? it will decrease. it will increase. it…

Brief Explanations:

When inventory increases, it means a company has spent cash to acquire more goods (either by purchasing from suppliers or producing more). In the cash - flow statement, under the indirect method (a common way to calculate cash flow from operations), an increase in inventory is subtracted from net income. This is because an increase in inventory represents an outflow of cash (used to build up inventory) that is not yet offset by a corresponding sale (which would bring in cash). So, it reduces the cash flow from operations.

Answer:

It will decrease.