Final answer:
Without more context, the causes behind the changes in Bookmyer Company's financial statements cannot be pinpointed to one event. The listed effects could result from a combination of business activities, like an increase in sales (both cash and credit), repayment of debt, and reductions in inventory.
Step-by-step explanation:
The student asked what business event could have led to certain effects on Bookmyer Company's financial statements. The effects mentioned could be related to several different events, such as an increase in sales revenue, a decrease in accounts payable, an increase in accounts receivable, and a decrease in inventory. To determine the cause, one must consider how each event would affect the company's financial statements.
- An increase in sales revenue would likely result in a higher income on the income statement.
- A decrease in accounts payable might happen if the company paid off some of its debts, which would decrease liabilities on the balance sheet.
- An increase in accounts receivable indicates that the company made more sales on credit, increasing assets on the balance sheet.
- A decrease in inventory would result from selling products, which would lower assets on the balance sheet and potentially increase the cost of goods sold on the income statement.
Without more context, it's not possible to determine which event or combination of events occured. However, if the question implies that all listed effects happened simultaneously, an increase in sales could be the driving force. Selling more on credit would increase accounts receivable and reduce inventory, while collecting some of those receivables would allow the company to pay off some of its payables. It's also possible that a combination of the listed events occurred independently of each other.