A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements: End of this year End of prior year Accounts receivable $115,000 $100,000 Cost of goods sold 560,000 Sales revenue 830,000 Accounts payable 77,000 67,000 Inventory 81,000 107.000 Salary payable 14,000 10,000 Salary expense 49.000 45,000 "Relates solely to the acquisition of inventory Which of the following is correct about inventory in the operating activities category of the cash flow statement? O A. The decrease of $26,000 will be added to cost of goods sold to determine payments to suppliers. OB. The decrease of 526,000 will be subtracted from cost of goods sold to determine payments to suppliers. OC. The decrease of $26,000 will be added to net income D. The decrease of $26,000 will be subtracted from net income