[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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Definitions:

Growth Mindset

The belief that abilities and intelligence can be developed through dedication and hard work, embracing challenges and learning from feedback.

Entrepreneurial Venture

A new business initiative undertaken by an entrepreneur, often characterized by innovation and risk-taking.

Growth Mindset

A concept referring to the belief that one's abilities and intelligence can be developed through dedication, hard work, and perseverance.

Fixed Mindset

The belief that basic qualities like intelligence or talent are fixed traits and that talent alone leads to success.