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QUESTION 1) (30 pts) On December 31, 2020, Company A sold 100 t-shirts to Company B for 1,600 KWD. Company A delivered half of the

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QUESTION 1) (30 pts) On December 31, 2020, Company A sold 100 t-shirts to Company B for 1,600 KWD. Company A delivered half of the products on the same day and promised to deliver the rest in the coming month. The total cost of the t-shirts is 1,000 KWD. Company B promised to pay the full amount in the next month. Company A trusts Company B as Company B is a regular customer of Company A. Answer the following questions in the given format. a) Only 800 KWD of the Total Revenue on the Income Statement 2020 of Company A comes from the above transaction. Indicate whether this statement is TRUE or FALSE? Justify your decision in min. 25 words. (If you do not justify your decision, you will not gain any points from this question.) (6 pts) b) 1,000 KWD of the Total Net Income on the Income Statement 2020 of Company A comes from the above transaction. TRUE or FALSE. Justify your decision in 20 words. (If you do not justify your decision min. 25 words, you will not gain any points from this question.) (6 pts) c) The above transaction does not have any effect on The Statement of Cash Flows 2020 of Company A. TRUE or FALSE. Justify your decision in 20 words. (If you do not justify your decision min. 25 words, you will not gain any points from this question.) (6 pts) d) The above transaction increased Total Asset on the 31-December-2021 Balance sheet of Company A by 600 KWD. TRUE or FALSE. Justify your decision in 20 words. (If you do not justify your decision min. 25 words, you will not gain any points from this question.) (6 pts) e) 1,000 KWD of the Total COGS on the Income Statement 2020 of Company A comes from the above transaction. Indicate whether this statement is TRUE or FALSE? Justify your decision in min. 20 words. (if you do not justify your decision, you will not gain any points from this question.) (6 pts)

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