Assume the perpetual inventory system is used. 1) Green Company purchased merchandise inventory that cost $17,800 under terms of 2/10, n/30 and FOB shipping point. 2) Green Company paid freight cost of $780 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 $27,100 cash and delivered under terms FOB destination with freight cost amounting to $580. What is the net cash flow from operating activities that results from these transactions?
A. $9656 inflow
B. $8296 inflow
C. $27,100 inflow
D. $18,804 outflow
Answer: B
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