[The Following Information Applies to the Questions Displayed Below

question 103

Multiple Choice

[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)$6,550
• D)$11,074

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