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

Question

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

Quizplus · Accepted Answer

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