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Need help with homework please explain how you do this! A company uses...

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Accounting

Need help with homework please explain how you do this!

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A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements: End of this year End of prior year Accounts receivable $115,000 $100,000 Cost of goods sold 560,000 Sales revenue 830,000 Accounts payable* 79,000 62,000 Inventory 86,000 106,000 Salary payable 14,000 10,000 Salary expense 49,000 45,000 *Relates solely to the acquisition of inventory Which of the following is correct about accounts payable transaction in the operating activities category in the statement of cash flows? O A. The increase of $17,000 will be subtracted from purchases to determine payments to suppliers. OB. The increase of $17,000 will be subtracted from net income. OC. The increase of $17,000 will be added to purchases to determine payments to suppliers. OD. The increase of $17,000 will be added to net income

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