Answer:
A decrease from net income in the operating cash flow.
Explanation:
If the inventory increases from the last year to the current year, there will be a cash outflow.
Since inventory is a current asset, it will be reported under the operating cash flow of the cash flow statement. According to the cash flow statement, if a current asset increases, it will be deducted from the net income. Therefore, under the cash flow from operating activities, and Inventory amount $3,000 = ($10,000 - 7,000) will be deducted from net income.
