39.ABC Company had a beginning balance of $10,000 in Unearned Service Revenue for 2019. During the year, the company collected cash from customers for services to be performed in the future in the amount of $350,000. On the 2019 balance sheet, ABC reported an ending balance in Unearned Service Revenue of $50,000. Identify how the statement of cash flows would report the appropriate information for operating activities under the direct and indirect methods. Direct Method Indirect Method A. Cash Receipts from Customers of $350,000 A subtraction of $40,000 B. A subtraction of $40,000 Cash Receipts from Customers of $350,000 C. Cash Receipts from Customers of $40,000 An addition of $40,000 D. An addition of $40,000 Cash Receipts from Customers of $350,000 E. Cash Receipts from Customers of 350,000 An addition of $40,000 F. None of the above 40.ABC Company reported, on its statement of cash flows, an addition to net income for the change in the Salaries Payable account. Which of the following is the best interpretation of this reported change? A.The amount paid for salaries was greater than the amount of salaries expense B.The amount paid for salaries was less than the amount of salaries expense C.The amount paid for salaries was equal to the amount of salaries expense D. The amount paid for salaries was greater than the beginning balance in Salaries Payable