Midtown Diner, Inc

Midtown Diner, Inc., purchased $10,000 of paper napkins for its restaurants. At the end of the period, three-fourths of the bill for the napkins is unpaid while an inventory revealed that 40% of the napkins were still on hand. What combination of amounts would affect the income statement and statement of cash flows? Statement of Cash Flow Income Statement

A) $6,000 $6,000
B) $7,500 $4,000
C) $2,500 $6,000
D) $6,000 $2,500