Francetti Co.purchased $6,000 of napkins for its business.One-fourth of the bill is unpaid.Upon review of the napkins still on hand, 20% were still available.What combination of amounts would affect the income statement and statement of cash flows? $$\begin{array}{l}
&\text {Statement of Cash Flow }&\text {Income Statement }\
\hline a.&(\$6,000)&(\$6,000)\
b.&(\$4,500)&(\$6,000)\
c.&(\$4,500)&(\$4,800)\
d.&(\$6,000)&(\$4,800)\
\end{array}$$

Question

Francetti Co.purchased $6,000 of napkins for its business.One-fourth of the bill is unpaid.Upon review of the napkins still on hand, 20% were still available.What combination of amounts would affect the income statement and statement of cash flows? ​ $$\begin{array}{l}
&\text {Statement of Cash Flow }&\text {Income Statement  }\
\hline a.&(\$6,000)&(\$6,000)\
b.&(\$4,500)&(\$6,000)\
c.&(\$4,500)&(\$4,800)\
d.&(\$6,000)&(\$4,800)\
\end{array}$$

Quizplus · Accepted Answer

The Answer of Francetti Co.purchased $6,000 of napkins for its business.One-fourth of the bill is unpaid.Upon review of the napkins still on hand, 20% were still available.What combination of amounts would affect the income statement and statement of cash flows? ​ $$\begin{array}{l}
&\text {Statement of Cash Flow }&\text {Income Statement  }\
\hline a.&(\$6,000)&(\$6,000)\
b.&(\$4,500)&(\$6,000)\
c.&(\$4,500)&(\$4,800)\
d.&(\$6,000)&(\$4,800)\
\end{array}$$