The users of financial statements need to understand the change in the inventory level, this can be calculated by the users by comparing the current and last year's financial statement.
Inventory is the current asset held by the company which is sold to customers to earn profits. This inventory is also called Stock, the inventory is presented in the financial statements under the current assets head.
The inventory breakup is also given in the notes to the financial statements and users are able to view and analyze that also.
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