Case 16.1 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. December 31, 2006 December 31, 2007 Accounts receivable $100,000 $110,000 Cost of goods sold 560,000 Sales revenue 830,000 Accounts payable* 67,000 75,000 Inventory 105,000 86,000 Salary payable 10,000 13,000 Salary expense 45,000 49,000 *Relates solely to the acquisition of inventory 3) Refer to Case 16.1. What will appear in the operating activities section related to salary payable? 3) A) The increase of $3,000 will be subtracted from net income B) The increase of $3,000 will be added to net income. C) The increase of $3,000 will be added to cost of goods sold. D) The increase of $3,000 will be subtracted from cost of goods sold