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 Accounts receivable Cost of goods sold Sales revenue Accounts payable* Inventory Salary payable $105,000 End of prior year $100,000 550,000 850,000 78,000 66,000 85,000 106,000 16,000 11,000 Salary expense 50,000 42,000 "Relates solely to the acquisition of inventory What will appear in the operating activities section related to accounts payable? OA. The increase of $12,000 will be added to cost of goods sold. B. The increase of $12,000 will be added to net income. C. The increase of $12,000 will be subtracted from net income. D. The increase of $12,000 will be subtracted from cost of goods sold