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 net cash flow from operating activities as a result of the four transactions is:
A. $5,100.
B. $7,726.
C. $6,550.
D. $11,074.