The Following Information Was Taken from the Operating Activity Section

The following information was taken from the operating activity section of the 2014 statement of cash flows for Limited Corp: Based on the information provided, which one of the following conclusions is correct?

A) Accounts payable decreased $2,000 in 2014.
B) Inventories increased $8,000 in 2014.
C) The direct method was used to prepare the operating section of the cash flow statement.
D) Cash payments of merchandise exceeded cost of goods sold by $2,000.