Financial Statement Effects of Accounts Payable Transactions Petroni Company engages in the following sequence of transactions every month: 1. Purchases $450 of inventory on credit. 2. Sells $450 of inventory for $630 on credit. 3. Pays other operating expenses of $165 in cash. 4. Collects $630 in cash from customers. 5. Pays supplier of inventory $450. a. Create a monthly income statement and statement of operating cash flow (direct method) for four consecutive months. Do not use negative signs with any of your answers below. 1 2 3 4 Income statement: Revenue $ $ $ $ Cost of goods sold Operating expenses Income $ $ $ $ Operating cash flows Receipts $ $ $ $ Payments to suppliers Payments for operating expenses Net cash flow from operations $ $ $ b. The CFO is disappointed with the cash flows from the business. They do not provide the support for investment and growth that she wants. She proposes delaying supplier payments by a month. That is, each month's inventory purchase will be paid for in the following month. How would this change the monthly income statements and operating cash flows in part a? Do not use negative signs with any of your answers below. 1 2 3 4 Income statement: Revenue $ $ $ $ Cost of goods sold Operating expenses Income $ $ $ $ Operating cash flows Receipts $ $ $ $ Payments to suppliers Payments for operating expenses Net cash flow from operations $ $ $ $