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Darlington Company experienced the following business events during its first month of operations. The company uses the perpetual Inventory system. 1) The company purchased $14,400 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,100 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 $22,600 cash. What is the net cash flow from operating activities as a result of the four transactions? Multiple Choice $11,526 $11,074 $5,100 $8,200

Darlington Company experienced the following business events during its first month of operations. The company uses the perpetual Inventory system. 1) The company purchased $14,400 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,100 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 $22,600 cash. What is the net cash flow from operating activities as a result of the four transactions? Multiple Choice $11,526 $11,074 $5,100 $8,200

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...
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Darlington Company experienced the following business events during its first month of operations. The company uses the perpetual Inventory system. 1) The company purchased $14,400 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,100 of merchandise to the supplier before payment was made. 3) The llability was paid within the discount period. 4) All of the merchandise purchased was sold for $22,600 cash. What is the net cash flow from operating activities as a result of the four transactions? Multiple Choice $11,526 $11,074 $5,100 $8,200
Transcribed Image Text:Darlington Company experienced the following business events during its first month of operations. The company uses the perpetual Inventory system. 1) The company purchased $14,400 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,100 of merchandise to the supplier before payment was made. 3) The llability was paid within the discount period. 4) All of the merchandise purchased was sold for $22,600 cash. What is the net cash flow from operating activities as a result of the four transactions? Multiple Choice $11,526 $11,074 $5,100 $8,200
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