Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Accounts Payable increased by $5,000 during the year. Choose the appropriate category on the statement of cash flows to report the increase in Accounts Payable. Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Accounts Payable increased by $5,000 during the year. Choose the appropriate category on the statement of cash flows to report the increase in Accounts Payable.

a. Cash Flows From Operating Activities-Add to Net Income

b.Cash Flows From Operating Activities-Deduct from Net Income

c. Cash Flows From Investing Activities

d. Cash Flows From Financing Activities

e. Non-cash