Assume the perpetual inventory system is used.1) Green Company purchased merchandise inventory that cost $18,000 under terms of 2/10, n/30 and FOB shipping point. 2) Green Company paid freight cost of $800 to have the merchandise delivered. 3) Payment was made to the supplier on the inventory within 10 days. 4) All of the merchandise was sold to customers for $27,500 cash and delivered under terms FOB destination with freight cost amounting to $600. What is the net cash flow from operating activities that results from these transactions?
A. $9860 inflow
B. $8460 inflow
C. $19,040 outflow
D. $27,500 inflow
Answer: B
You might also like to view...
An organization's _______ expresses the need the firm will fill, the operations of the business, its components and functions, and the expected revenues and expenses.
A. mentoring plan B. code of ethics C. risk statement D. business model E. code of business
The Clean Air Act requires that new stationary sources such as factories and power plants:
A. may sell vehicles subject to emission standards if the tests are not performed on prototype vehicles. B. install the best available technology for reducing air pollution. C. rely on already existing technology to meet the standards. D. install a system that raises the amount of hydrocarbons emitted by automobiles.
________ is the ability of the employee to see the link between an individual employee's work and the achievement of organizational objectives.
A. Internal alignment B. Marginal productivity C. Line-of-sight D. Job evaluation E. Workflow
The physician-patient privilege allows a patient to object to a doctor testifying as to
private information regarding the patient and allows the physician to object to the patient testifying as to private information regarding the physician. a. True b. False