What is the effect on the statement of financial position, when the business has cash sales of $18,000 of goods that were originally purchased for $15,000?

Choose one answer.

a.

Increase asset bank $18,000; decrease equity $18,000.

b.

Increase asset bank $18,000; decrease asset inventory $15,000; increase equity $3,000.

c.

Increase asset bank $3,000; increase equity $3,000.

d.

Increase asset bank $18,000; decrease asset inventory $18,000.

e.

Increase asset bank $18,000; increase equity $18,000.