Marion Company Had These Transactions During the First Month of the New

question 53

Multiple Choice

Marion Company had these transactions during the first month of the new accounting period:
$\bullet$ Sold merchandise for $9000 on credit; its cost was $5000 and it was purchased and paid for last year
$\bullet$ Collected $3000 from an account receivable
$\bullet$ Borrowed $10 000 from the bank
$\bullet$ Paid dividends of $500
Using the above information, Marion would report net cash flow from operating activities for the new period as:

• A) $2500.
• B) $3000.
• C) $8000.
• D) none of the answers provided.

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Definitions:

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services.

Primary Markets

Financial markets where new securities are issued and sold for the first time to investors, such as initial public offerings (IPOs).