[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. $5,100
B. $7,726
C. $11,074
D. $6,550
Answer: B
You might also like to view...
Which of the following is representative of safeguarding assets?
A) attaching electronic sensors to merchandise inventory B) reducing expenses to increase operating profit C) increasing operating profit to increase net income D) allowing company accountants to handle cash
Most companies are typically organized by departments or functional areas. Which of the following is not a common department found in a company?
A. Human resources B. Marketing C. Payroll D. Accounting
According to Table 8-3, the constraint that the survey must have at least a total of 1500 students is expressed as
A) X1 + X2 + X3 + X4 + X5 + X6 ? 1500. B) X1 + X2 + X3 + X4 + X5 + X6 ? 1500. C) 10X1 + 15X2 + 12X3 + 18X4 + 15X5 + 21X6 ? 1500. D) 10X1 + 15X2 + 12X3 + 18X4 + 15X5 + 21X6 ? 1500. E) X1 + X3 + X5 ? 1500.
Judging from the Disney-Pixar merger, which of these is an effective way to create shareholder value from a merger?
A. Raise consumer prices at the acquiring company and the acquired company to reflect the fact that the market is now less competitive. B. Integrate the acquired company as fully as possible, merging staffs and locations, so that all employees have as similar an on-the-job experience as possible. C. If the acquired company creates high-quality products or services, don't force it to mirror the management style of the acquiring company. D. Cut prices at the acquired company but not the acquiring company so that the acquisition covers all consumer price points.