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Assume the perpetual inventory method is used. 1) Green Company purchased merchandise inventory that cost $17,500 under terms of 2/10, 1/30 and FOB shipping point.
Assume the perpetual inventory method is used. 1) Green Company purchased merchandise inventory that cost $17,500 under terms of 2/10, 1/30 and FOB shipping point. 2) The company paid freight cost of $750 to have the merchandise delivered. 3) Payment was made to the supplier within 10 days. 4) All of the merchandise was sold to customers for $26,500 cash and delivered under terms FOB shipping point with freight cost amounting to $550 paid by Green company. As a result of the above transactions of Green Company, the net cash flow from operating activities was: $18,450 outflow. $26,500 inflow. $9350 inflow. O $8050 inflow
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