In Its 2016 Income Statement,WME Reported $440,000 for the Cost

Multiple Choice

In its 2016 income statement,WME reported $440,000 for the cost of goods sold.WME paid inventory suppliers $380,000 in 2016,and its inventory balance decreased by $41,000 during the year.In its reconciliation schedule,WME should:

A) Show a $19,000 positive adjustment to net income under the indirect method for the increase in accounts payable.
B) Show a $19,000 positive adjustment to net income under the indirect method for the decrease in accounts payable.
C) Show a $19,000 negative adjustment to net income under the indirect method for the increase in accounts payable.
D) Show a $19,000 negative adjustment to net income under the indirect method for the decrease in accounts payable.