Which of the following is true concerning the calculation of cash paid to suppliers using the direct method?

Select one:

a.

Decreases in inventory are subtracted from cost of goods sold.

b.

Decreases in accounts payable indicate that you paid out less cash to suppliers than the amount you purchased from them in the current year.

c.

The best estimate for cash paid to suppliers is usually cost of goods sold.

d.

Decreases in inventory indicate that some of the inventory sold this year were purchased last year.