The Following Information Was Taken from the Operating Activities Category

Multiple Choice

The following information was taken from the Operating Activities category of the 2017 statement of cash flows for Limited Corp.: ?
$\begin{array}{lr}\text { Additions to net income: Change in accounts payable } & \$ 2,000 \\\text { Deductions from net income: Change in inventories } & 8,000\end{array}$
Based on the information provided,which of the following conclusions is correct?

A) Accounts payable decreased by $2,000 in 2017.
B) Inventories increased by $8,000 in 2017.
C) The direct method was used to prepare the Operating Activities of the statement of cash flows.
D) Cash payments of merchandise exceeded cost of goods sold by $2,000.