Darlington Company Entered into the Following Business Events During Its

question 178

Multiple Choice

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)$6,550
• D)$11,074

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Definitions:

Median Income

A statistical measure that divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount.

Mortality

The state of being subject to death or the incidence of death within a population.

Health Maintenance Organizations

Organizations that provide health insurance and restrict care to providers within their network, often focusing on prevention and efficient healthcare delivery.

Private Corporations

Business entities owned by private individuals or groups, not controlled by the government, and operated for profit.