Consider the following statements.
1. Inventory includes raw material, finished goods and goods in process.
2. Inventory is the part of working capital.
3. Inventory includes goods likely to be purchased in the coming months.
Which of the statements given above are correct?

A. Both 1 and 2

B. Both 2 and 3

C. Both 1 and 3

D. All of the above

Answer: Option A