During the year, Shoe Productions recorded inventory purchases on credit of $337.8 million. The financial statement effect of these purchase transactions would be to:

Select one: a. Increase liabilities (Accounts payable) by $337.8 million b. Decrease cash by $337.8 million c. Increase expenses (Cost of goods sold) by $337.8 million d. Decrease noncash assets (Inventory) by $337.8 million e. None of these are correct