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Spic & Spam, Inc. started the month of June with $600 worth of cleaning supplies. During the month, Spic & Spam purchased $300 of supplies for cash. At June 30, $200 worth of supplies was unused. How will the company report these events on its statement of cash flows for the month of June?
a. The statement of cash flows will show cash paid for supplies of $(300).
b. The statement of cash flows will show supplies expense of $700.
c. The statement of cash flows will show supplies expense of $200.
d. This is a trick question. The statement of cash flows will not report anything about any of these events.
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