A Company Uses the Direct Method to Prepare the Statement

A company uses the direct method to prepare the statement of cash flows.How will the amount of cash payments to employees be computed?

A) The amount of cash payments to employees is computed as salary expense plus the decrease in salaries payable.
B) The amount of cash payments to employees is computed as salary expense plus the ending balance salaries payable.
C) The amount of cash payments to employees is computed as salary expense plus the increase in salaries payable.
D) The amount of cash payments to employees is computed as salary expense plus the beginning balance in salaries payable.