Barker Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 cash and the second cost $20.00 cash. Barker sold one inventory item for $30.00 cash. Based on this information alone, without considering the effect of income taxes, which of the following statements is correct?
A. Cash flow from operating activities is $11.00 assuming the weighted-average inventory cost flow method is used.
B. Cash flow from operating activities is $10.00 assuming the LIFO inventory cost flow method is used.
C. Cash flow from operating activities is $12.00 assuming the FIFO inventory cost flow method is used.
D. The amount of cash flow from operating activities is not affected by the inventory cost flow method chosen.
Answer: D
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