Using the Indirect Method, Where Does the Decrease in Accounts

Multiple Choice

Using the indirect method, where does the decrease in accounts payable appear in a consolidated statement of cash flows?

A) $7,000 increase to net income as an operating activity.
B) $7,000 decrease to net income as an operating activity.
C) $5,600 increase to net income as an operating activity.
D) $5,600 decrease to net income as an operating activity.
E) $7,000 increase as a financing activity.