In its first year of business, Company A purchases 100 bags of cement. The company paid $500 to have the bags delivered. The company sold 75 of these bags. In addition to the reduction in cash, how does the $500 delivery cost affect the company's financial statements? Increases Cost of Goods Sold on the Income Statement and Inventory on the Balance Sheet Increases Inventory on the Balance Sheet Increases Cost of Goods Sold on the Income Statement None of the above