tro:  if you have a business that pretty much uses up any inventory you purchase you can probably not indicate any inventory, only report what you purchase however, in many businesses, it is needed to declare the inventory on hand to more closely arrive at a net profit, it is a hybrid cash/accrual method personally I have a little beer bar(or a small fast food) and essentially they really pretty much use up what they buy each month, we don't show inventory, but I also have a wholesaler, on the cash basis and we do show inventory because if we reported just his purchases, he would never have any profit
2010-01-14 17:35:21