![Inventory](https://img-cdn.financeunlocked.com/headers-images/financeunlocked/1.jpg?ik-sdk-version=javascript-1.0.3)
Inventory
A company’s inventory consists of its stock of finished products, intermediate or semi-manufactured goods or raw materials that will be used to produce finished goods. Inventory is presented on the balance sheet as a current asset. When the inventory is sold, the cost of the inventory that is sold is transferred to the Cost of Goods sold line item in the income statement.