A company uses the indirect method to prepare the statement of cash flows. It presents the...

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A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements: End of prior year Accounts receivable Cost of goods sold Sales revenue Accounts payable Inventory Salary payable Salary expense End of this year $115,000 $100,000 560,000 830,000 75,000 67,000 86,000 105,000 13,000 12,000 49,000 45,000 *Relates solely to the acquisition of inventory What will appear in the operating activities section related to salary payable? OA. The increase of $1,000 will be added to net income. B. The increase of $1,000 will be subtracted from cost of goods sold. OC. The increase of $1,000 will be added to cost of goods sold, OD. The increase of $1,000 will be subtracted from net income. A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements: End of prior year Accounts receivable Cost of goods sold Sales revenue Accounts payable Inventory Salary payable Salary expense End of this year $115,000 $100,000 560,000 830,000 75,000 67,000 86,000 105,000 13,000 12,000 49,000 45,000 *Relates solely to the acquisition of inventory What will appear in the operating activities section related to salary payable? OA. The increase of $1,000 will be added to net income. B. The increase of $1,000 will be subtracted from cost of goods sold. OC. The increase of $1,000 will be added to cost of goods sold, OD. The increase of $1,000 will be subtracted from net income.