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A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements: End of this

A company uses the indirect 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 Cost of goods sold Sales revenue Accounts payable* Inventory Salary payable $115,000 $100,000 560,000 830,000 75,000 67,000 86,000 105,000 16,000 9,000 49,000 45,000 Salary expense "Relates solely to the acquisition of inventory What will appear in the operating activities section related to salary payable? A. The increase of $7,000 will be added to cost of goods sold. B. The increase of $7,000 will be subtracted from net income. C. The increase of $7,000 will be subtracted from cost of goods sold. D. The increase of $7,000 will be added to net incomeimage text in transcribed

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