Inventory is an item that can be easily utilized as an earnings management tool because its year-end holding levels and book values can be adjusted at management's discretion. In particular, prior studies have reported that firms substantively manage net income by abnormally manipulating year-end inventory. However, prior studies have understood the process of managing earnings through inventory solely through the logic of cost of goods sold adjustment, whereas inventory can be utilized not only to adjust cost of goods sold but also to adjust sales revenue. Therefore, this study aimed to more specifically identify the patterns of inventory utilization in the earnings management process by empirically analyzing, from various perspectives, how abnormal changes in year-end inventory are related to sales revenue adjustments and cost of goods sold adjustments among firms listed on the Korea Exchange. The research findings are summarized as follows. First, during the research period, sample firms were found to have upwardly adjusted current-period sales revenue by abnormally decreasing year-end inventory. Additionally, a pattern of downwardly adjusting cost of goods sold through year-end inventory was also observed. Second, it was found that sample firms primarily utilized inventory to upwardly adjust sales revenue rather than to adjust cost of goods sold. This result complements the limitations of prior studies that explained earnings management through inventory solely through the logic of cost of goods sold adjustment. Third, firms more suspected of loss avoidance tended to upwardly adjust sales revenue by abnormally decreasing year-end inventory. Additionally, larger listed firms tended to upwardly adjust sales revenue by abnormally decreasing year-end inventory. This study is significant in that it is the first to empirically determine whether the primary purpose of utilizing inventory in the earnings management process is sales revenue adjustment or cost of goods sold adjustment. In particular, given the findings that firms more motivated to avoid losses and larger listed firms upwardly adjust sales revenue by abnormally decreasing year-end inventory, the empirical demonstration that the primary purpose of inventory utilization for earnings management encompasses sales revenue adjustment as well as cost of goods sold adjustment supports the validity of this study in extending the scope of prior research.