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Inventory Methods...
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Inventory Methods
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I understand that Cash Flow Statement is based on cash basis and the Income Statement is based on accrual basis but if by using different inventory costing method, you get different Operating Income results, and assuming no taxes, Net Income is still different. Then, Cash Flow from Operations (indirect method), starts with a different Net Income number depending on the Inventory Costing Method, so how is that cash flow from operation ended up to be the same for either inventory costing method? Read More