Assume the perpetual inventory method is used. 1) The company purchased $4,900 o

Question

Assume the perpetual inventory method is used.

1) The company purchased $4,900 of merchandise on account underterms 2/10, n/30.
2) The company returned $530 of merchandise to the supplier beforepayment was made.
3) The liability was paid within the discount period.
4) All of the merchandise purchased was sold for $6,490 cash.
The net cash flow from operating activities as a result of thefour transactions is: (Round your answer to the nearest dollar amount.)
$4,370. $2,120. $1,590. $2,207. Assume the perpetual inventory method is used.

1) The company purchased $4,900 of merchandise on account underterms 2/10, n/30.
2) The company returned $530 of merchandise to the supplier beforepayment was made.
3) The liability was paid within the discount period.
4) All of the merchandise purchased was sold for $6,490 cash. The net cash flow from operating activities as a result of thefour transactions is: (Round your answer to the nearest dollar amount.) $4,370. $2,120. $1,590. $2,207. $4,370. $2,120. $1,590. $2,207.

Explanation / Answer

Answer $ 2,207 Explanation Inventory purchase      4,900 - purchasereturns         530 Netpurchases            4,370 -discount (2%)       87.40 pmt                            4,282.60 Cash flow Sales                 6,490 -cogs                 4,282.60 GM                   2,207.40 Rounded to nearest dollar $ 2,207

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