An increase in which of the following indicates cash outflow?

An increase in inventory signifies cash outflow because it reflects additional purchases of goods that a business intends to sell. When a company acquires more inventory, it needs to spend cash (or incur debt) to buy these additional goods, thereby reducing available cash on hand. This outflow occurs because cash is directly used in these transactions, impacting the company's liquidity.

In contrast, increases in accounts payable or short-term debt indicate that the company is delaying a cash outflow, as these are liabilities that the company needs to pay in the future. An increase in accounts receivable can mean that the company has made sales but has not yet collected cash from those sales, which does not reflect a cash outflow in the current period. Thus, understanding cash flows is crucial for managing a business's financial health and planning for future expenses.