A2 A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements:End of prior yearEnd of this year$115,000$100,000520,000850,000Accounts receivableCost of goods soldSales revenue65,000110,00012,00044,000Accounts payable*81,000Inventory92,000Salary payable15,500Salary expense50,000*Relates solely to the acquisition of inventoryWhat will appear in the operating activities section related to accounts payable?A. The increase of $16,000 will be subtracted from net income.B. The increase of $16,000 will be subtracted from purchases to determine payments to suppliers.OC. The increase of $16,000 will be added to purchases to determine payments to suppliersD. The increase of $16,000 will be added to net income.

Name: A2 A company uses the direct method to prepare the statement of cash f
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: A2 A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements:End of prior yearEnd of this year$115,000$100,000520,000850,000Accounts receivableCost of goods soldSales revenue65