Set up 1: Suppose a company increases its sales by giving customers an interest holiday whereby customers can delay payment for the goods and pay no interest. The company offers this option because its sales growth is falling behind projections. Some customers, who would otherwise pay cash, will take advantage of this offer causing the companys receivables to increase by 10% while its sales only increased by 6%. Where do the sales revenues show up on the companys financial statements?

Group of answer choices

A. Cash flow statement, since sales increase that implies cash increased.

B. Only the balance sheet.

C. Both the balance sheet and the income statement

D. Only the income statement