Question: Using the direct method to prepare the statement of cash flows, cash payments for merchandise inventory is categorized on the statement of cash flows as

Using the direct method to prepare the statement of cash flows, cash payments for merchandise inventory is categorized on the statement of cash flows as

A. a cash payment in the investing activities section on the statement of cash flows.

B. a cash payment in the operating activities section on the statement of cash flows.

C. a cash receipt in the investing activities section on the statement of cash flows.

D. a cash receipt in the operating activities section on the statement of cash flows.

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