Cash for additional supplies

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Reference no: EM131211101

At the beginning of 2016, Stillwater Company had a $250 balance in its Supplies account. During the year the company paid $1,500 cash for additional supplies. The physical count of supplies on hand at the end of 2016 was $1,400. Which of the following statements related to Stillwater Company's 2016 transactions is incorrect?

a. The account Supplies represents a liability on the balance sheet.

b. The statement of cash flows for operating activities decreased by $1,500.

c. Net income decreased by $350.

d. All of the statements are correct.

Reference no: EM131211101

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