5. Ace Co. purchased inventory that cost $10,000 under terms 2/10, n/30. The inventory was delivered under terms FOB destination. Freight costs of $500 were paid in cash. Ace paid for the inventory within ten days. Ace sold the goods on account for $13,000, freight terms FOB destination. Freight costs of $320 were paid in cash.

Ace would report net cash inflow from operating activities on its statement of cash flows of

	a.	$(9,800)
	b.	$(10,120)
	c.	$2,880
	D.	$3,200