Answer:
It will decrease the cash flow
Explanation:
The purchase of inventory will make the inventory increase, therefore on the indirect method, when adjusting for the working capital, the increase on invneotry will be considered a use of cash in operating activities:
net income
adjustment on net income
adjuste net income X
change in working capital
Increase on iventory (Y)
other current increase and decreases ....
This purchase decrease the cashflow, as it is using cash to purchase an asset.
