What if a company has a high level of inventory
Inventory is an asset before it is used and does not have a directimpact to income. What if a company has a high level of inventorydue to decreasing demand, could that have an impact to income?
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Increasing or decreasing inventory does have an affect on incomebecause it used to calculate either cost of good manufactured (rawmaterials) which goes into calculating costs of good sold(inventory).
Inventory is an asset before it is used and does not have a directimpact to income. What if a company has a high level of inventory due to decreasing demand, could that have an impact to income?
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