The Following Information Is Reported in the Operating Activities Section

The following information is reported in the operating activities section of Gateway's statement of cash flows for 2014: Which one of the following conclusions can be assumed from the information provided?

A) Gateway used the direct method to determine cash flows from operating activities.
B) Gateway purchased more merchandise than it sold in 2014.
C) Cash payments for merchandise purchases were less than the amount of merchandise purchased on credit during 2014.
D) Cash payments for merchandise exceeded cost of goods sold by $200,000.