Jackson Company uses the direct method to prepare its statement of cash flows. Jackson has reported cost of goods sold of$$ $$5,000$ on its income statement for $2024.$ If the balance in the Merchandise Inventory account decreased by$$ $$1,000$ during the$$ year, then$$ $$1,000$ needs to be subtracted from the$$ $$5,000$ to calculate payments to suppliers for inventory purchases.

Part $1$

True

False