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Selected data for Kris Corporations comparative balance sheets for Year 1 and Year 2 are as follows: Year 1 Year 2 Assets Cash $ 100,000

Selected data for Kris Corporations comparative balance sheets for Year 1 and Year 2 are as follows: Year 1 Year 2 Assets Cash $ 100,000 $ (50,000 ) Accounts receivable (net) 50,000 100,000 Inventory 100,000 250,000 Equipment (net) 300,000 350,000 Total assets $ 550,000 $ 650,000 Liabilities and Equity Accounts payable $ 150,000 $ 100,000 Income taxes payable 80,000 30,000 Bonds payable 100,000 80,000 Common stock 100,000 200,000 Retained earnings 120,000 240,000 Total liabilities and Equity $ 550,000 $ 650,000 The changes in the Accounts Payable balance would be recorded on the statement of cash flows as:

an increase of $50,000 under operating activities.

a decrease of $50,000 under operating activities.

an increase of $50,000 under financing activities.

a decrease of $50,000 under financing activities.

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