Avatar Company Uses the Indirect Method to Prepare the Statement

Multiple Choice

Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet:
$$\begin{array} { | l | r | r | r | } \hline&2014 & 2013 & \text { Increase/decrease }\\\hline \text { Accounts payable } & \$ 4,000 & \$ 6,000 & \$ ( 2,000 ) \\\hline \text { Accrued liabilities } & 2,000 & 1,000 & 1,000 \\\hline \text { Long-term notes payable } & 84,000 & 90,000 & ( 6,000 ) \\\hline \text { Total liabilities } & \$ 90,000 & \$ 97,000 & \$ ( 7,000 ) \\\hline\end{array}$$

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How will the change in Accounts payable be shown on the statement of cash flows?

A) Operating activities minus positive cash flow
B) Operating activities minus negative cash flow
C) Financing activities minus positive cash flow
D) Investing activities minus negative cash flow