this statement is correct , because: total inventories of raw materials, work-in-process, and final goods increased from $6,930 million to $8,662 million between year 1 and year 2 the accruals balance decreased by $410 million between years 1 and 2 total inventories of raw materials, work-in-process, and final goods decreased by $1,732 million between year 1 and year 2