UBS DeckMedium

Three-statement walkthrough: a company buys $100 of inventory with cash this quarter, then sells it next quarter for $150 cash. Take me through both periods (40% tax rate).

Model answer

Period one (purchase): income statement — nothing, inventory isn't expensed until sold. Cash flow statement — inventory up $100 is a working-capital use of cash, so cash falls $100. Balance sheet —…

The full, human-reviewed answer is in the bank.

Sign up free and Daily 10 serves you 10 questions a day from all 2,000+ — or go Pro for unlimited reps.

More from UBS Deck

Browse all topics