[The Following Information Applies to the Questions Displayed Below

question 46

Multiple Choice

[The following information applies to the questions displayed below.]

Assume the perpetual inventory system is used.

1) Green Company purchased merchandise inventory that cost $64,000 under terms of 2/10, n/30 and FOB shipping point.
2) Green Company paid freight cost of $2,400 to have the merchandise delivered.
3) Payment was made to the supplier on the inventory within 10 days.
4) All of the merchandise was sold to customers for $94,000 cash and delivered under terms FOB destination with freight cost amounting to $1,600.

-What is the net cash flow from operating activities that results from these transactions?

• A)$94,000 inflow
• B)$27,280 inflow
• C)$66,720 outflow
• D)$31,280 inflow

---

Definitions:

Degenerative Changes

The process involving the gradual deterioration of the structure or function of tissues, organs, or the entire organism, often associated with aging.

Age Validation

The process or method used to confirm or determine an individual's age or the age of objects or samples.

Age Discrimination

Unfair treatment or prejudicial attitudes towards individuals or groups based on their age, particularly in the context of employment and workplace.

Fluid Pressure

The pressure exerted by a fluid at any given point within the fluid, dependent on the depth and density of the fluid.