Inventory refers to the goods and materials that a business holds for the ultimate purpose of resale or production. It is a critical component of a company's operations and financial health, as it represents a significant portion of the assets on the balance sheet. Inventory can include raw materials, work-in-progress, and finished goods. Here are some statements that show inventory:

1. Balance Sheet Statement: The most direct way to see inventory is on a company's balance sheet. Under the "Current Assets" section, you will typically find a line item labeled "Inventory." This figure represents the total value of all goods and materials that the company has on hand at the end of the reporting period.

2. Income Statement: While the income statement does not directly show inventory, it does reflect the cost of goods sold (COGS), which is closely related to inventory. COGS represents the direct costs attributable to the production of the goods sold by a company. The relationship between inventory and COGS can be seen in the formula: [ \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} = \text{COGS} ] This formula shows how inventory levels affect the cost of goods sold and, consequently, the gross profit.

3. Cash Flow Statement: The cash flow statement provides insights into how inventory changes affect a company's cash position. In the "Operating Activities" section, changes in inventory are listed as an adjustment to net income. An increase in inventory indicates that the company has spent cash to purchase more goods, while a decrease suggests that the company has sold off inventory, thereby generating cash.

4. Notes to Financial Statements: The notes accompanying the financial statements often provide detailed information about inventory. This can include the accounting policies used to value inventory (e.g., FIFO, LIFO, or weighted average cost), any write-downs for obsolete or damaged inventory, and the breakdown of inventory into raw materials, work-in-progress, and finished goods.

5. Management Discussion and Analysis (MD&A): In the MD&A section of a company's annual report, management may discuss inventory levels and their impact on the business. This can include explanations for significant changes in inventory, such as increased production, changes in demand, or supply chain disruptions.

6. Inventory Turnover Ratio: This financial ratio, calculated as: [ \text{Inventory Turnover Ratio} = \frac{\text{COGS}}{\text{Average Inventory}} ] provides insight into how efficiently a company is managing its inventory. A higher ratio indicates that the company is selling and replacing inventory quickly, while a lower ratio may suggest overstocking or slow sales.

7. Days Sales of Inventory (DSI): This metric, calculated as: [ \text{DSI} = \frac{\text{Average Inventory}}{\text{COGS}} \times 365 ] shows the average number of days it takes for a company to turn its inventory into sales. A lower DSI indicates more efficient inventory management.

8. Gross Margin Analysis: Gross margin, calculated as: [ \text{Gross Margin} = \frac{\text{Revenue} - \text{COGS}}{\text{Revenue}} \times 100 ] can be influenced by inventory management. Efficient inventory management can lead to lower COGS and higher gross margins, while poor inventory management can result in higher COGS and lower gross margins.

9. Inventory Aging Report: This internal report provides a detailed breakdown of inventory by age, showing how long items have been in stock. It helps management identify slow-moving or obsolete inventory that may need to be written down or disposed of.

10. Supplier and Purchase Orders: While not a financial statement, supplier and purchase orders can provide insights into future inventory levels. An increase in purchase orders may indicate that the company is expecting higher demand and is preparing to increase inventory levels.

In summary, inventory is a crucial element of a company's financial statements and operational strategy. It is directly shown on the balance sheet and indirectly reflected in the income statement, cash flow statement, and various financial ratios and reports. Understanding how inventory is managed and reported can provide valuable insights into a company's efficiency, profitability, and overall financial health.