QUESTION 6 Not complete Marked out of 1.00PFlag question Financial Statement Effects of Accounts Payable Transactions Petroni Company engages in the following sequence of transactions every month Purchases $300 of inventory on credit. 2. Sells $300 of inventory for $420 on credit. 3. Pays other operating expenses of $110 in cash 4. Collects $420 in cash from customers. 5. Pays supplier of inventory $300 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 2 4 Income statement: Revenue Cost of goods sold Operating expenses Income Operating cash flows Receipts Payments to suppliers Payments fo r 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. 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