Assuming that Sonic Company uses the indirect method for the statement of cash flows, an activity may classified into the categories as follows: a. Operating activity-add to net income b. Operating activity-subtract from net income c. Investing activity-cash inflow d. Investing activity-cash outflow e. Financing activity-cash inflow f. Financing activity-cash outflow g. Noncash transaction A decrease in accounts payable should be classified as Operating activity-add to net income. Investing activity cash inflow. Operating activity subtract from net income. Noncash transaction