Use the Following for Questions

question 94

Multiple Choice

Use the following for questions
Assume the perpetual inventory method is used.
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.
-The amount of gross margin from the four transactions is:

• A)$5,100.
• B)$7,726.
• C)$6,550.
• D)$11,074.

Determine the impact of changes in current asset and liability accounts on cash flows.

Explain the significance and calculation of free cash flow.

Understand the adjustments needed to reconcile net income with net cash provided by operating activities.

Recognize ethical considerations in financial management and reporting.