I still don't understand why an increase in A/P should be deducted?

Question 8 (AICPA.921110FAR-P1-FA) Flax Corp. uses the direct method to prepare its Statement of Cash Flows. Flax's trial balances at December 31, 2024 and 20X3, are as follows: December 31 20X4 20X3 Debits: Cash $ 32,000 Accounts receivable 30,000 $ 35,000 33,000 31,000 100,000 47,000 95,000 4,500 5,000 Inventory Property, plant, & equipment Unamortized bond discount Cost of goods sold Selling expenses General & administrative expenses 250,000 380,000 141,500 172,000 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 $756,700 61,200 $976,100 == Credits: Allowance for uncollectible accounts $ 1,100 $ 1,300 16,500 15,000 Accumulated depreciation Trade accounts payable Income taxes payable 25,000 21,000 5,300 17,500 27,100 Deferred income taxes 4,600 8% callable bonds payable 20,000 45,000 50,000 Common stock 40,000 9,100 7,500 Additional paid-in capital Retained earnings 44,700 Sales 538,800 $756,700 64,600 778,700 $976,100 Flax purchased $5,000 in equipment during 20X4. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. What amounts should Flax report in its Statement of Cash Flows for the year ended December 31, 20X4, for cash paid for goods to be sold? Your Answer $258,500 $257,500 $242,500 Correct $226,500 This Answer is Correct Two accounts are related to cost of goods sold: inventory and accounts payable. Cost of goods sold $250,000 Less decrease in inventory (This represents an increase to cost of goods sold for inventory not purchased in the current period. Thus, the cash paid for (16,000) inventory is less than cost of goods sold by this amount.) Less increase in accounts payable (This represents an increase in purchases and, therefore, cost of goods sold that was not paid for in the current period. (7,500) Thus, the cash paid for inventory is less than cost of goods sold by this amount.) Equals cash paid for inventory $226,500