Question: A company uses the indirect method to prepare the statement of cash flows. It presents the following amounts on its December 31, 2007 financial statements.
A company uses the indirect method to prepare the statement of cash flows. It presents the following amounts on its December 31, 2007 financial statements. -Relates solely to the acquisition of inventory 14) Refer to Case 16.1. What will appear in the operating activities section related to accounts payable? 14) A) The increase of $8,000 will be subtracted from cost of goods sold. B) The increase of $8,000 will be subtracted from net income C) The increase of $8,000 will be added to cost of goods sold. D) The increase of $8,000 will be added to net income
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