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Which of the following would be a Type II subsequent event?
a. Information becomes available that provides evidence about the valuation of an estimate or reserve that had been accrued at year end. b. A sale of inventory below carrying value provides evidence that the net realizable value was less than cost at year end. c. A stock dividend or split that takes place during the subsequent period should be disclosed. In addition, earnings-per-share figures should be adjusted to show the retroactive effect of the stock dividend or split. d. A material change occurs in the value of investment securities after the balance sheet date.
Supply chain flexibility is ________ than/as in the past.
a. Less b. Greater c. About the same d. It is impossible to know how supply chain flexibility has changed over time
[The following information applies to the questions displayed below.] Darlington Company entered into the following business events during its first month of operations. The company uses the perpetual inventory system. 1) The company purchased $12,500 of merchandise on account under terms 2/10, n/30. 2) The company returned $1,200 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $18,800 cash. What is the net cash flow from operating activities as a result of the four transactions?
A. $6,550 B. $5,100 C. $7,726 D. $11,074
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