18. Flagler Company purchased $4,000 of merchandise on account. Flagler sold the merchandise to a for $7,000 cash. What is the increase in gross margin and the net change in cash flow from operating activities as a result of these transactions? Cash flow from Gross margin 7,000 3,000 S 3,000 S 4,000 S 4,000 inflow S 7,000 inflow S 7,000 outflow S 7,000 inflow A. C